AMARDEEP CHAUDHARY,PANCHKULA, HARYANA V. INCOME TAX OFFICER, WARD 1 PANCHKULA, PANCHKULA HARYANA

ITA 750/CHANDI/2025

AI Insights

The case involves Amardeep Chaudhary, the appellant, contesting the order of the CIT(A) which upheld the addition of Rs. 1,66,05,363 as income from other sources, specifically enhanced compensation and interest received under the Land Acquisition Act. The appellant argued that such compensation and interest should not be taxed, referencing the Supreme Court's decision in CIT vs Ghanshyam (HUF). The CIT(A) had disallowed the claim based on the provisions of Section 56(2)(viii) of the Income Tax Act, 1961, as amended by the Finance Act No. 2 of 2009. The Tribunal also dismissed the appellant's challenge against the intimation order under section 143(1) due to lack of jurisdictional basis. However, the Tribunal granted a 50% deduction under section 57, acknowledging the appellant's alternative claim.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 826354 (ITAT-CHANDIGARH)
• Duration Of Justice: 7 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-01-2026
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2017-2018
• Appeal Filed On: 24-05-2025
• Other Referred Cases: CIT vs Ghanshyam (HUF) [(2009) 315 ITR 1 (SC)], Ajay Kumar and Others vs ITO in ITA No. 463/Chd/2023 for assessment year 2018-19
• Laws Referred To: Income Tax Act, 1961, Land Acquisition Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: VIVEK VARDHAN
• Assessee Lawyers: B.M. MONGA; ROHIT KAURA ADVOCATES
• Section: 28

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, CHANDIGARH PHYSICAL HEARING BEFORE HON’BLE SHRI LALIET KUMAR, JM AND HON’BLE SHRI KRINWANT SAHAY, AM आयकरअपीलसं./ ITA No.750/CHD/2025 (िनधाŊरणवषŊ / Assessment Year: 2017-18) Amardeep Chaudhary House No. 153, Sector-2, Panchkula, Haryana - 134112 बनाम/ Vs. ITO Ward 1 Panchkula ITO Ward-1, Panchkula, ˕ायीलेखासं./जीआइआरसं./PAN/GIR No. AAKPC-3432-A (अपीलाथŎ/Appellant) : (ŮȑथŎ / Respondent) अपीलाथŎकीओरसे/ Appellant by : Sh. B.M. Monga & Sh. Rohit Kaura (Advocates) ŮȑथŎकीओरसे/Respondent by : Sh. Vivek Vardhan (Addl. CIT) Sr. DR सुनवाईकीतारीख/Date of Hearing : 17-12-2025 घोषणाकीतारीख /Date of Pronouncement : 06- 01-2026 आदेश / O R D E R Krinwant Sahay (Accountant Member) 1. Appeal in this case has been filed by the Assessee against the order dated 29.11.2024 passed by the Ld. Addl./JCIT(A)-2, Delhi herein referred to as ‘Addl. CIT(A)’. 2. Grounds of appeal are as under: 1. That the order of Ld. CIT(A) is against the law AMD facts of the case. Printed from counselvise.com 2 2. That the Learned CIT(A) has grossly erred in uploading the illegal order passed by the Assessing Officer wherein an addition of amount of Rs. 1,66,05,363/- was made on account of amount received by the assessee as enhanced compensation alongwith the interest u/s 28 of the Land Acquisition Act, as income from other sources, whereas the enhanced compensation AMD interest received u/s 23(I-A), 23(2) AMD 28 is exempt as held by the Hon'ble Supreme Court AMD various Hon'ble Courts. 3. That the Learned CIT(A) has grossly erred in uploading the intimation order passed u/s 143(1) by the AO, CPC, Bangalore without appreciating the fact that intimation order is without proper jurisdiction AMD passed beyond the scope AMD powers enshrined u/s 143(1). 4. Without prejudice to the aforesaid grounds of appeal AMD strictly in the alternative the Ld. AO AMD CIT(A), has grossly erred in not allowing the benefit of 50% deduction of said sum duly allowable u/s 57 of the Income Tax Act. 5. That the appellant craves leave to add OR amend the grounds of appeal before the appeal is finally heard AMD disposed off. 3. The Registry has pointed out that there is a delay of 113 days in filing of the appeal before the Tribunal. The Counsel of the Assessee has filed an application along with Affidavit on behalf of the Assessee, making prayer for condonation of delay. The affidavit of the Assessee is as under: Printed from counselvise.com 3 Printed from counselvise.com 4 Printed from counselvise.com 5 Printed from counselvise.com 6 4. We have considered the reasons given in the Application / Affidavit and keeping in view the facts and circumstances mentioned therein, we are inclined to condone the delay. 5. The ld. DR did not have any objection for condonation of delay. Accordingly, the delay in filing of the appeal is hereby condoned and we proceed to decide the appeal on merit. 6. Appeal on ground Nos. 1 and 5 are general in nature. 7. Appeal on ground No. 2 is against the addition of Rs. 1,66,05,363/- made on account of amount received by the Assessee as enhanced compensation along with interest of the Land Acquisition Act under as ‘income from other sources’. 8. During proceedings before us, ld. Counsel for the Assessee made submissions that the Assessee is entitled for enhanced compensation alongwith interest u/s 28 of the Income Tax Act, 1961 (in short 'the Act') of the Land Acquisition Act and for this purpose he relied on the case laws i.e. ‘CIT vs Ghanshyam (HUF) [(2009) 315 ITR 1 (SC) ]. But Printed from counselvise.com 7 the Ld. CIT(A) did not accept the arguments of the Assessee and by noting down the provisions of Section 56(2)(viii) inserted by Finance Act No. 2 of 2009 w.e.f 1.4.2010, disallowed the claim of the Assessee and sustained the addition made by the lower authority. Against the said order of the Ld. CIT(A), the Assessee has filed this appeal before the Tribunal. 9. During proceedings before us, ld. Counsel for the Assessee again cited the case laws of ‘CIT vs Ghanshyam’ (supra) and argued that the Assessee should be allowed enhanced compensation and interest thereon. 10. Per contra, the ld. DR relied on the order of the Coordinate bench of ITAT Chandigarh wherein, the issue in question has been dealt and the Tribunal has already given detailed findings on this issue in its order passed on 11.11.2025 in a group of cases with leading case i.e. ‘Ajay Kumar and Others vs ITO’ in ITA No. 463/Chd/2023 for assessment year 2018-19. It has been pointed out by Ld. DR that in the said case (supra), it has been clearly held that after insertion of section 56(2)(viii), the Assessee cannot be Printed from counselvise.com 8 allowed the benefit of enhanced compensation and interest thereon in land acquisition cases. 11. We find that this ground is squarely covered by the detailed findings given by the Coordinate Bench on this issue in the case of ‘Ajay Kumar and Others vs ITO (supra). Accordingly, we are of this considered view that the findings given by the Ld. CIT(A) on this issue does not require any interference. Accordingly, following our own order cited above, Assessee’s appeal on this ground is dismissed 12. The appeal on ground No. 3 is against the order of the Ld. CIT(A) in upholding the intimation order u/s 143(1) by the AO-CPC, Banglore on the ground that it was without proper justification. On this issue, the Ld. Addl. CIT(A) given a very clear and categorical finding in her order and we are of the considered view that the findings given by the her on this issue needs no interference. Accordingly, Assessee’s appeal on this issue is dismissed. 13. Appeal on ground No.4 is for allowing benefit of 50% deduction of the said sum allowable u/s 57 of the Act. During proceedings before us, ld. Counsel for the Assessee argued that alternatively the Assessee should be allowed 50% deduction as allowable u/s 57 of the Act. Printed from counselvise.com 9 14. Per contra, the Ld. DR relied on the orders of the authorities below. 15. We have considered the arguments of the ld. Counsel for the Assessee as well as that of the Revenue. After considering the submissions, we direct the Assessing Officer to recompute the income of the Assessee keeping in view the allowable deduction to the extent of 50% of the Act, Thus, Assessee’s appeal on this ground is allowed. 16. In the result, Assessee’s appeal is partly allowed. Order pronounced on 06.01.2026. Sd/- Sd/- (LALIET KUMAR) (KRINWANT SAHAY) JUDICIAL MEMBER ACCOUNTANT MEMBER Rkk/abha आदेश की Ůितिलिप अŤेिषत /Copy of the Order forwarded to : 1. अपीलाथŎ/Appellant 2. ŮȑथŎ/Respondent 3. आयकरआयुƅ/CIT 4. िवभागीयŮितिनिध/DR 5. गाडŊफाईल/GF ASSISTANT REGISTRAR ITAT CHANDIGARH Printed from counselvise.com "