Dimple Bhatia Batta vs. National Faceless Appeals Centre

Parties Involved

Facts Summary

The assessee, Dimple Bhatia Batta, filed her return of income for A.Y. 2018-19 declaring total income at Rs. 4,40,330/-. The case was taken for complete scrutiny and the assessment was completed by treating the interest on enhanced compensation as income of the assessee under section 56(2)(viii) of the Income Tax Act, 1961. The assessee claimed that the interest awarded under the provisions of the Land Acquisition Act, 2013, being in the nature of compensation, is a capital receipt and not exigible to tax under Section 56(2)(viii) of the Act. The National Faceless Appeals Centre (NFAC) dismissed the appeal of the assessee, leading the appellant to file an appeal before the Tribunal.…

Legal Issues

• 1. Whether the order passed by NFAC is erroneous and bad in law.
• 2. Whether the NFAC erred in law by passing the order based on a draft assessment order.
• 3. Whether the NFAC erred in confirming the assessment of income made by the AO.
• 4. Whether the addition of Rs. 49,04,240/- is in disregard of the fact that the interest is a capital receipt.
• 5. Whether the NFAC failed to consider relevant Supreme Court judgments.
• 6. Whether the NFAC erred in sustaining the initiation of penalty proceedings under section 270A of the Act.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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