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TMI Blog2023 (9) TMI 1508X X X X Extracts X X X X X X X X Extracts X X X X ..... e u/s 18 of the 1894 Act. HELD THAT:- The assessee field return of income declaring income from other sources of Rs. 1,76,583/- whereas the income has been determined by the CPC at Rs. 10,43,479/- and in the appellate proceedings, CIT(A) has dismissed the appeal of the assessee. During the arguments, assessee has submitted that the computation of the enhanced compensation and interest thereon. Assessee has also filed letter in vernacular language in which as per assessee there are seven beneficiaries listed as per the Court order. This fact was not submitted during the first appellate proceedings, therefore, this issue is remitted back to the AO for determination of the correct income in the hands of the assessee as per shares of the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income returned by the appellant of Rs. 1,76,583/- 2. The assessee also filed additional grounds of appeal, which is as under:- i) The learned CIT(A) failed appreciate that interest income on enhanced compensation for acquisition of agriculture property was to be considered as part of consideration since sale of agricultural property being a capital receipt was exempt no income was taxable on the facts and circumstances of the case. 2) The learned CIT(A) failed appreciate that the deduction u/s 57(iv) of the Act provides 50% deduction on interest on enhanced compensation received on the facts and circumstances of the case. 3) The authorities below failed to appreciate that no adjustment u/s 154 of the Act could be made, unless the appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... heirs 11 including the appellant, on the facts and circumstances of the case. 2. The learned Assessing officer was not justified in appreciating that it is settled position that Consent does not confer jurisdiction on the facts and circumstances of the case. 3. Without prejudice and not conceding that the enhanced compensation was in the nature of a capital receipt, the income if any was to be restricted to 1/7th share of the gross receipt, in the hands of the appellant on the facts and circumstances of the case. 4. At the time of hearing, it was noticed that the appeal filed by the assessee was delayed by 16 days, which has been explained by the assessee in the Affidavit dated 20/05/2023 and he has also relied on the following judgments : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1)(a) of the Act and solatium u/s 23(2) of the Act, noted that section 28 is applicable only in respect of the excess amount which has been determined by the Court after reference u/s 18 of the 1894 Act. The CIT(A) after discussing the issue in detail relied judgments dismissed the appeal of the assessee by observing as under:- 6.6 DECISION: With the above discussion, it is decided that the interest income received on compensation or enhanced compensation is taxable in the year of receipt as per the provisions of S.56(2)(viii) rws 57(iv) of the Act. The interest income received on enhanced compensation cannot be spread over as per the decision of Hon'ble SC's decision which is not applicable due to the reason of change in the provis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e lower authorities. He submitted that the CIT(A) has rightly taxed in the hands of the assessee and the facts about seven beneficiaries were not brought to the notice of the CIT(A) during the appellate proceedings. The case law relied by the ld.CIT(A) is squarely applicable in the present facts of the case. The amendment made by the Finance Act in this regard is squarely applicable and the case law relied by the assessee during the appellate proceedings are before amendment, therefore the case laws are not applicable. Accordingly, he requested that the order of the CIT(A) should be upheld. 11. Considering the rival submissions, I note that the assessee field return of income declaring income from other sources of Rs. 1,76,583/- whereas the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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