Sh. Mange Ram Vs. Pr. Commissioner of Income Tax, Faridabad

Parties Involved

Facts Summary

The case pertains to the appeal of Sh. Mange Ram against the order of the Principal Commissioner of Income Tax (PCIT), Faridabad, dated 04.12.2023, involving proceedings under section 147 r.w.s. 144 of the Income-tax Act, 1961. The sole issue is the correctness of the lower authorities' action assessing the assessee’s interest component of land acquisition compensation under section 28 of the Land Acquisition Act, 1894, while invoking section 57(iv) r.w.s. 56(1)(a) r.w.s. 145A(b) of the Act. 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 this interest as exempt.…

Legal Issues

• 1. Correctness of assessing the interest component of land acquisition compensation under section 28 of the Land Acquisition Act, 1894, as income from 'other sources'.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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