9911796707
TMI Blog2016 (1) TMI 1444X X X X Extracts X X X X X X X X Extracts X X X X ..... in this agreement. Be it as it may, the Court of the ADJ has taken cognizance of this agreement and had decreed the issue in favour of the assessee. The decree stands in the name of both Shri Ashok Kumar Singhal and Shri Varun Kumar Singhal. The A.O. based his order on surmises. Hence we have no hesitation in upholding the order of the Ld.CIT(A) on this issue. Hence we dismiss this ground of appeal. On the issue of taxability of interest the Ld.CIT(A) followed the decision of Hon ble Supreme Court in the case of Rama Bai vs. CIT [ 1989 (11) TMI 2 - SUPREME COURT] and in the case of CIT vs. Ghanshyam HUF [ 2009 (7) TMI 12 - SUPREME COURT] The Ld.D.R. has not pointed out any contrary decision. Thus we uphold this order of the Ld.CIT(A) and d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... est, from government, for land acquired from them, by paying them certain consideration. The dispute for enhanced compensation and interest thereon was in Court. 2.1. Later, enhanced compensation and interest thereon, was awarded on 22.2.2006 on the above acquisition of land, w.e.f. 28.12.1985 amounting to ₹ 41,09,654.69. The assessee and his son filed returns of income for the A.Y. 2006-07 declaring equally the income by way of compensation from land and interest thereof respectively. The A.O. during the course of assessment proceedings raised a query, as to why under the facts and circumstances of the case, the compensation and interest received should not be taxed in the hands of Shri Ashok Kumar Singhal and Shri Varun Singhal in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n appeal. The First Appellate Authority relied on the order of the Civil Court and subsequently directed that the compensation is to be split between the assessee and his son equally in terms of the order of the Civil Court. On the issue of taxability of interest, he relied on the judgement of the Hon'ble Apex Court in the case of Rama Bai vs. CIT, 181 ITR 400(S.C.) and held that the interest has to be assessed on accrual basis only and as no interest accrued during the year the addition is to be deleted. 3. Aggrieved the Revenue is in appeal before us on both the issues. 4. We have heard Shri K.K.Jaiswal, Ld.D.R. on behalf of the Revenue and Shri Rajiv Singhal, the Ld.Counsel for the assessee. 5. On a careful consideration of the facts ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
