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TMI Blog2023 (5) TMI 274X X X X Extracts X X X X X X X X Extracts X X X X ..... e nature referred to in clause (viii) of sub-section (2) of section 56, a deduction of a sum equal to fifty per cent of such income would be allowed and no deduction shall be allowed under any other clause of this section. It is apparently clear from perusal of the provisions of section that the interest received by the assessee on compensation is taxable under the head income from other source and while computing the income of the assessee a deduction has to be allowed 50% and no other deduction shall be provided under any other clause of this Section but there is no bar in claiming exemption of compensation income u/s 11 of the Act as the section specifically provides that under this section which is 57 of the Act no other deduction sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llant : Shri Sunil Surana, FCA For the Respondent : Shri Vijay Kumar, Addl. CIT, Sr. DR ORDER PER RAJESH KUMAR, AM: This is the appeal by the revenue and the cross-objection by the assessee against the order of the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC)- Delhi (hereinafter referred to as the Ld. CIT(A) ] dated 07.05.2022 for the AY 2016-17. 2. The revenue has challenged the order of Ld. CIT(A) wherein the Ld. CIT(A) has allowed the deduction u/s 57(iv) of the Act from the interest received on compensation by the assessee from Govt. of Rajasthan in respect of compulsory acquisition of land. The revenue has also challenged the order of Ld. CIT(A) on the ground that income of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d a compensation of Rs. 22,37,37,412/- on 09.12.2015 towards acquisition of its land by the Govt. of Rajasthan. The compensation received of Rs. 22,37,37,412/- is inclusive of interest of Rs. 5,79,74,943/-. In the ITR 7 dated 16.10.2016, in schedule- Other sources deduction u/s 57 of Rs. 2,89,87,471/- (50% of 5,79,74,943) has been claimed by the appellant. The deduction claimed of by the appellant (50% of 5,79,74,943/-) is as per the provisions of I.T. Act. Further the appellant has uploaded other evidence such as receipt of interest on compensation, Bank statement, letter issued by the Rajasthan Govt. to fortify its claim. Therefore, it is hereby held that the determination of total income at Rs. 2,36,48,683/- by the AO in the or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and thus allowed the appeal of the assessee. We have perused the provisions of Section 56(2)(viii) which provides that income by way of interest received on compensation or on enhanced compensation would be treated as income u/s 56(1) as income from other sources and provisions of Section 57(iv) provides that in the case of income of the nature referred to in clause (viii) of sub-section (2) of section 56, a deduction of a sum equal to fifty per cent of such income would be allowed and no deduction shall be allowed under any other clause of this section. It is apparently clear from perusal of the provisions of section that the interest received by the assessee on compensation is taxable under the head income from other source and while comp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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