Sh. Deepak Kumar Yadav Vs. Income Tax Officer, Ward-2, Rewari, Haryana

Parties Involved

Facts Summary

The case involves an appeal by Sh. Deepak Kumar Yadav against the order of the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre (CIT(A)/NFAC), Delhi, regarding the assessment of the interest component of land acquisition compensation under section 28 of the Land Acquisition Act, 1894. The assessee received interest of Rs. 3,97,56,460/- on enhanced compensation after the compulsory acquisition of his agricultural land, on which TDS amounting to Rs. 39,75,646/- @ 10% was deducted. The assessee claimed this interest as exempt. The issue revolves around whether this interest should be taxed as 'income from other sources' or as part of 'capital gains' under section 10(37) of the Income-tax Act, 1961.…

Legal Issues

• 1. Correctness of assessing the interest component of land acquisition compensation under section 57(iv) r.w.s. 56(1)(a) r.w.s. 145A(b) of the Income-tax Act, 1961.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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