ITA 5707/DEL/2026

Parties Involved

Facts Summary

The assessee, Rakesh, filed an appeal against the order of the Principal Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre, challenging the assessment of interest received on enhanced compensation for the compulsory acquisition of his agricultural land. The assessee claimed that the interest received under section 28 of the Land Acquisition Act, 1894, was exempt under section 10(37) of the Income-tax Act, 1961. The Principal Commissioner of Income Tax (Appeals) set aside the assessment order, directing the Assessing Officer to pass an order afresh. The assessee appealed to the Income Tax Appellate Tribunal, arguing that the Assessing Officer's order was not erroneous and that the interest received was exempt from tax.…

Legal Issues

• 1. Whether the interest received on enhanced compensation is taxable as income from other sources or exempt under section 10(37) of the Income-tax Act, 1961.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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