Raj Singh vs. Income Tax Officer, Ward-3(1)

Parties Involved

Facts Summary

This appeal by the assessee, Raj Singh, is directed against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, dated 31.03.2024, for the assessment year 2018-19. The primary issue raised by the assessee is against the addition made by the Assessing Officer (AO) in respect of interest received by the assessee on enhanced compensation of land under section 28 of the Land Acquisition Act, 1894. The assessee received enhanced compensation of Rs.67,32,824/- including interest of Rs.42,92,939/-. The assessee claimed the interest as exempt from tax based on certain Supreme Court decisions. However, the AO held that the interest is taxable under section 56(2)(viii) of the Act read with section 57(iv) as amended by the Finance (No.2) Act 2009.…

Legal Issues

• 1. Whether the interest received by the assessee on enhanced compensation of land is taxable under section 56(2)(viii) of the Act.

Judgment Outcome

Decided in favour of Revenue.

Precedents Relied Upon

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