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TMI Blog2021 (4) TMI 494X X X X Extracts X X X X X X X X Extracts X X X X ..... Ghanshyam HUF(2009) 315 ITR 1 has held that Interest awarded u/s 28 o f Land Acquisition Act, 1894 is nothing but an accretion to the value of compensation and hence it is part and parcel of compensation. Thus taxability of such interest is of Capital nature an d should be included to Consideration received for the purpose of computation of capital gain u/s 45 of Income Tax Act, 1961.Hence, addition made of Rs. 32,14,916/- be deleted. 2. This clearly implies, as is the settled law, that a capital receipt, unless specifically taxable under section 45 under the head Capital Gain, in principle, is outside the scope of income chargeable to tax and a receipt cannot be taxed as income unless it is in the nature of a revenue receipt or is speci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of Rs. 3,50,000/- was filed on 24/7/2014 by the assessee who is an individual. The Assessing Officer assessed the income at Rs. 42,88,380/- thereby making addition of Rs. 42,88,380/- relating to compensation and interest received u/s 28 of the Land Acquisition Act, 1894 and taxing the same as per Section 56(2)(viii) as it is coming to 50% of the actual interest of Rs. 85,32,259/-. 4. Being aggrieved by the assessment order, the assessee filed appeal before the CIT(A). The CIT(A) dismissed the appeal of the assessee. 5. The Ld. AR submitted that the Hon'ble Supreme Court in case of CIT Vs. Ghanshyam Das (HUF) 315 ITR 1, held that interest awarded u/s 28 of the Land Acquisition Act is a capital receipt and the same is an accretion to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee relied upon judgment of Hon'ble Supreme Court in case of Hari Singh passed in 2017. He further contented that on the basis of this decision, the Hon'ble ITAT, Delhi in case of co-owner allowed the appeal and thus it is a covered matter in favour of assessee. On the basis of the same, the Hon'ble bench had directed the Department to submit Written Statement in the case and the matter has been kept as HEARD. In this regard, it is humbly submitted that the assesse has not supplied the copy of the judgment or the citation during the hearing. However, the undersigned has found the case of UOI vs Hari Singh dated 15.09.2017 in Appeal No. 15041 of 2017 arising out of SLP (c) No. 28069 of 2010 dated 15.09.2017. Also, it is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee had received Rs. 1.42 crore on account of enhanced compensation of land acquisition, which included compensation of Rs. 56.90 lakhs and interest of Rs. 85.32 Lakhs. The Assessing Office had made addition of Rs. 42.66 Lakhs being 50% of interest of Rs. 85.32 lakhs u/s 56(2)(viii) r.w. Section 57(iv) of the Income Tax Act, 1961. The capital receipt unless specifically taxable u/s 45 under the head capital gain, in principle, is outside the scope of income chargeable to tax and cannot be taxed as income unless it is in the nature of Revenue receipt or specifically brought within the ambit of income by way of specific provision of the Income Tax Act. Thus, the interest received on compensation to the assessee is nothing but a capital re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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