Dilbag Singh vs Income Tax Officer, Rohtak

Parties Involved

Facts Summary

The case pertains to the assessment of the interest component of land acquisition compensation received by the assessee, Dilbag Singh, under section 28 of the Land Acquisition Act, 1894. The interest was received as part of enhanced compensation after the compulsory acquisition of agricultural land by the Haryana Government. The Income Tax Officer (ITO) assessed the interest as income from 'other sources,' whereas the assessee claimed it to be exempt under section 10(37) of the Income Tax Act, 1961, as part of the enhanced compensation. The Principal Commissioner of Income Tax (PCIT) revised the assessment order, setting it aside and directing the ITO to pass a fresh order. Dilbag Singh appealed this revision before the Tribunal.…

Legal Issues

• 1. Whether the interest received under section 28 of the Land Acquisition Act, 1894, is taxable as income from 'other sources' or exempt as part of enhanced compensation under section 10(37) of the Income Tax Act, 1961.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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