Sudhakar Purushottam Bhalerao Vs. ITO, Ward-1, Latur

Parties Involved

Facts Summary

This case involves an appeal by the assessee against the order of the Commissioner of Income Tax (Appeals) for the Assessment Year 2020-21. The assessee, Sudhakar Purushottam Bhalerao, received interest on enhanced compensation of Rs. 24,67,240/- on compulsory acquisition of land under the Land Acquisition Act, 1894. The Assessing Officer treated this interest as taxable under section 56(2)(viii) of the Income Tax Act, 1961. The assessee argued that the interest should be exempt as it is part of the enhanced compensation and not taxable. The Commissioner of Income Tax (Appeals) confirmed the assessment order, leading to the present appeal.…

Legal Issues

• 1. Whether the interest received on enhanced compensation is taxable under section 56(2)(viii) of the Income Tax Act, 1961?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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