Income from Other Sources u/s 56(2) - interest received u/Sec. ...

Interest on Land Acquisition Compensation Not Taxable as Income, Tribunal Rules; Bombay Bench Decision Prevails.

May 7, 2024

Case Laws     Income Tax     AT

Income from Other Sources u/s 56(2) - interest received u/Sec. 28 of the Land Acquisition Act, 1894 granted by the learned Reference Court - The Tribunal agrees with the appellant's contention that interest received under Section 28 of the Land Acquisition Act is part of the land acquisition compensation itself and thus not taxable under Section 56(2) of the Income Tax Act. - The Tribunal holds that decisions of the Bombay bench of the High Court, within its territorial jurisdiction, prevail over those of the Aurangabad bench. Therefore, it upholds the appellant's argument that the Bombay bench's decision applies to the case at hand, leading to a favorable outcome for the assessee.

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