Sh. Mahender vs. Income Tax Officer, Ward-1, Hisar

Parties Involved

Facts Summary

The case pertains to the assessment year 2020-21, involving the correctness of the assessing authority's action in assessing the interest component of land acquisition compensation under section 28 of the Land Acquisition Act, 1894, while invoking sections 57(iv), 56(1)(a), and 145A(b) of the Income-tax Act, 1961. The assessee received interest of Rs. 3,97,56,460/- on enhanced compensation from HUDA after the compulsory acquisition of his agricultural land, on which TDS amounting to Rs. 39,75,646/- @ 10% was also deducted. The assessee claimed the said interest as exempt. The Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre (CIT(A)/NFAC) revised the assessment order, which the assessee challenged before the Tribunal.…

Legal Issues

• 1. Correctness of assessing the interest component of land acquisition compensation as income from 'other sources'.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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