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TMI Blog2020 (10) TMI 1360X X X X Extracts X X X X X X X X Extracts X X X X ..... n Act - HELD THAT:- Interest u/s 28 is unlike interest u/s 34 is accretion to the value, hence, it is part of enhanced compensation whereas the interest u/s 34 of the Act is interest. As no information is available on record, we set aside the whole issue back to the file of the ld AO with a direction to the assessee to show that with reference to various order, under which section of the Land Acquisition Act interest is received by the assessee. AO may examine the whole issue with respect to taxability of the same and decide it afresh. The assessee is directed to submit the complete information before the ld AO within 3 months from the date of this order and thereafter the issue may be decided on the merits of the case. Accordingly, ground No. 2 and 3 of the appeal are allowed with above direction. - ITA No. 6344/Del/2015 - - - Dated:- 28-10-2020 - SHRI H.S.SIDHU, JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER For the Assessee : Written submission For the Revenue : Shri Vipul Kashyap, Sr. DR ORDER PER PRASHANT MAHARISHI, A. M. 1. This is an appeal filed by the assessee against the order of ld CIT(A), Faridabad dated 09.09.2015 for th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also put on 30/3/2007. The assessee did not file any return and did not comply with any notices. Assessment order u/s 144 of the Act was passed on 20.11.2007 u/s 144 of the Act determining total income of the assessee at Rs. 15147430/-. The assessee preferred an appeal before the ld CIT(A), who allowed the appeal of the assessee on 25.08.2008 holding that addition on account of enhanced compensation and interest shall only be taxable when they are finally settled by the Hon ble High Court or Supreme Courts. Revenue approached the coordinate bench who directed the ld AO to decide the issue afresh by following the decision of the Hon ble Supreme Court in case of CIT Vs. Ghanshyan Das (HUF) 315 ITR 1. The coordinate bench also directed the ld AO to give opportunity of hearing. Thus, this is the second round before us. 4. As per the direction of ITAT AO gave many opportunities to the assessee however, none appeared therefore, the assessment order was passed by the ld AO u/s 144 of the Act dealing with the facts of the case in paragraph 4 and 5 as under:- 4. The brief facts of the case are that the agriculture land belonging to the assessee located at village Fatehpur Chandela, F ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation is enhanced or further enhanced by any Court, tribunal or other authority, the capital gain shall be dealt with in the following manner, namely:- (a) The capital gain computed with reference to the compensation awarded in the first instance or, as the case may be, the consideration determined or approved in the first instance by the Central Government or the Reserve Bank of India shall be chargeable as income under the head capital gains of the previous year in which such compensation or part thereof or such consideration or part thereof, was first received; and (b) The amount by which the compensation or consideration is enhanced or further enhanced by the Court, Tribunal or other authority shall be deemed to be income chargeable under the head capital gain of the previous year in which such amount is received by the assessee. (4.2) In the present case the assessee has physically received the amount of enhanced compensation of Rs.89,70,358/- and enjoying it in absolute terms. The provisions of section 45(5) make it abundantly clear that the capital gain arising out of enhanced compensation is taxable in the year of its receipt. Supreme Court of India also held ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ii) Long Term capital gain as discussed above(para 5) Rs. 61.11,073/- Total Income Rs.1,50,81,431/- Or R/o Rs.1,50,81,430/- Assessed at Rs.15,081,430/- (long term capital gain). Charge interest u/s 234A/B. The penalty proceedings 271(l)(b) and 271(l)(c) have been initiated separately. Assessed. Issue requisite documents. 5. Thus, the ld AO assessed the total income of Rs. 15081430/-. The assessee preferred an appeal before the ld CIT (A) challenging the action of the ld AO u/s 148 of the Act, which was dismissed. However he, held that amount of consideration received in the impugned land is Rs. 42255187/- and share of the assessee is only Rs. 1/4th therefore, the addition cannot be made more than Rs. 10563797/-. With respect to interest on late payment it was submitted by the assessee that interest granted u/s 28 of the Land Acquisition Act 1894 is part of the compensation whereas interest u/s 34 is for delay in making payment if the compensation amount is determined is interest chargeable to tax . It was further stated that inter ..... X X X X Extracts X X X X X X X X Extracts X X X X
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