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TMI Blog2023 (12) TMI 705X X X X Extracts X X X X X X X X Extracts X X X X ..... d compensation. But in present assessee s case, the interest has been granted by the Hon ble Principal Senior Civil Judge while awarding additional compensation to the assessee. Therefore, the decision of Hon ble Apex Court which is a three judge bench decision in case of Bikram Singh [ 1996 (9) TMI 6 - SUPREME COURT] will be applicable wherein it is clearly held that the interest was not intended to exclude the revenue receipt on interest on delayed payment of compensation from taxability. Hence, the appeal of the assessee is dismissed. - Ms. Suchitra Kamble, Judicial Member And Shri Waseem Ahmed, Accountant Member For the Assessee : None For the Revenue : Shri Ashish Kumar Pandey, Sr. D.R. ORDER PER : SUCHITRA KA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessing Officer and held that since the assessee s agricultural land was acquired by the Government of Gujarat and initial compensation on compulsory acquisition of land was challenged by the assessee and the assessee was awarded additional compensation along with the interest and therefore the interest component to the extent of 50% enhanced compensation has to be taxed u/s . 56(2)(viii) under the head income from other sources . 4. Being aggrieved by the assessment order, the assessee filed appeal before the ld. CIT(A). The CIT(A) dismissed the appeal of the assessee. 5. At the time of hearing, none appeared on behalf of the assessee despite giving the notices which was duly served to the assessee thereby the postal remark that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Narang Vs CBDT [2021] 126 taxmann.com 105 (SC) dismissed the special leave petition filed against the order of Hon'ble High Court of Punjab and Haryana [2020] 120 taxmann.com 400 (Punjab and Haryana High Court) wherein it was held that the interest on enhanced compensation under Land Acquisition Act, 1894 is to be treated as income from other sources and not under the head 'capital gains'. While discussing the decision of Apex Court in Ghanshyam's case (supra) the High Court noted that in view of the amendments, the decision of Apex Court in Ghanshyam's case (supra) does not come to the rescue of the petitioner to claim that interest received under section 28 of the 1894 Act is to be treated as compensation and to be de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntroduced. Of course if there is ambiguity in the statutory language, reference may be made to the legislative intent to resolve the ambiguity. But if the statutory language is unambiguous then that must be given effect to. The legislature is deemed to intend and mean what it says. The need for interpretation arises only when the words used in the statute are, on their own terms ambivalent and do not manifest the intention of the legislature. 5. Further in a recent judgment by the Pune Tribunal in the case of Madhav Pandharinath Kande Vs ITO [2022] 140 taxmann.com 105 (Pune Tribunal), the Hon'ble Tribunal relying upon the decisions of Hon'ble Bombay High Court, Aurangabad Bench held that the decision in Bikram Singh case (supr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... relying on the case laws cited above and in view of the specific amendment brought in the Act to section 145A(b), 56(2)(viii) and 57(iv) by Finance Act, 2009, the legislative intent is clear and the addition of 50 per cent of the interest on enhanced compensation has been correctly done and hence it is prayed that the addition may be confirmed and orders of authorities below may be upheld. 6.1 Thus, the ld. D.R. submitted that in light of decision of Hon ble Apex Court in case of Bikram Singh Vs. Land Acquisition Collector (1997) 224 ITR 551. The interest u/s . 28 of the 1894 Act was a revenue receipt and is taxable. The ld. D.R. further submitted that the Hon ble Punjab Haryana High Court in case of Mahendra Pal Narang Vs. CBDT 120 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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