BIJENDRA KUMAR,NOIDA V. DCIT, INCOME TAX OFFICE, NOIDA

ITA 4285/DEL/2025

AI Insights

The case involves an appeal by Bijendra Kumar against the order of the CIT(A)/NFAC, Delhi, which assessed the interest component of land acquisition compensation as taxable income under section 28 of the Land Acquisition Act, 1894, read with section 57(iv) r.w.s. 56 r.w.s. 145A(b) of the Income Tax Act, 1961. The Tribunal examined precedents and arguments from both sides, noting that the jurisdictional High Court had not provided clear guidance on this issue. The Tribunal ultimately decided to reverse the lower authorities' decisions, aligning with certain High Court rulings that supported the non-taxability of such interest income.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 787364 (ITAT-DELHI)
• Duration Of Justice: 4 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-11-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2016-2017
• Appeal Filed On: 04-07-2025
• Other Referred Cases: Collector Land Acquisition vs. Mst. Katiji & Ors, Mahender Pal Narang Vs. CBDT, PCIT Vs. Inderjit Singh Sodhi HUF, Movaliya Bhikhubhai Balabhai vs. ITO, Rupesh Rashmikant Shah vs. Union of India, Anvar Ali Poolakkodan Vs. ITO, CIT Vs. Vegetable Products Ltd.
• Laws Referred To: Income Tax Act, 1961, Land Acquisition Act, 1894
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AJAY KUMAR ARORA
• Assessee Lawyers: RAJKUMAR SINGH CHAUHAN
• Section: 143(3); 28

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘A’, NEW DELHI Before Sh. Satbeer Singh Godara, Judicial Member & Sh. S. Rifaur Rahman, Accountant Member ITA No. 4285/Del./2025 : Asstt. Year: 2016-17 Bijendra Kumar, Village-Geha, Sector-93, Noida, Uttar Pradesh-201305 Vs DCIT, Income Tax Office, Sector-24, Noida-247947 (APPELLANT) (RESPONDENT) PAN No. AQZPB6790P Assessee by : Sh. Rajkumar Singh Chauhan, CA Revenue by : Sh. Ajay Kumar Arora, Sr. DR Date of Hearing: 19.11.2025 Date of Pronouncement: 19.11.2025 ORDER Per Satbeer Singh Godara, Judicial Member: This assessee’s appeal for Assessment Year 2016-17, arises against the CIT(A)/NFAC, Delhi’s DIN & order No. ITBA/NFAC/S/250/2024-25/1064404501(1) dated 26.04.2024, in proceedings u/s 143(3) of the Income Tax Act, 1961 (in short “the Act”). 2. Heard both the parties at length. Case file perused. 3. Delay of 369 days in filing of the instant appeal is condoned in the larger interest of justice in light of Collector Land Acquisition vs. Mst. Katiji & Ors (1987) 167 ITR 471 (SC). Printed from counselvise.com ITA No. 4285/Del./2025 Bijendra Kumar 2 4. It emerges during the course of hearing that the sole substantive issue between the parties is that of correctness of the learned lower authorities action assessing the assessee’s interest component of land acquisition compensation u/s 28 of the Land Acquisition Act, 1894, while invoking section 57(iv) r.w.s. 56 r.w.s. 145A(b) of the Act. 5. Learned Sr. DR representing the department vehemently argued that the instant issue is no more res integra in light of Mahender Pal Narang Vs. CBDT (2020) 423 ITR 13 (P&H) as well as PCIT Vs. Inderjit Singh Sodhi HUF (2024) 161 taxmann.com 301 (Del.) wherein the department has succeeded before their lordships that the impugned interest component ought to be assessed as income from “other” sources only. 6. The assessee on the other hand places strong reliance on Movaliya Bhikhubhai Balabhai vs. ITO (2016) 388 ITR 343 (Guj.), Rupesh Rashmikant Shah vs. Union of India (2019) 108 taxmann.com 181 (Bom) and Anvar Ali Poolakkodan Vs. ITO (2025) 173 taxmann.com 633 (Ker) holding that such an interest income on enhanced compensation under the provisions of the Land Acquisition Act, 1894 is not taxable even after the Printed from counselvise.com ITA No. 4285/Del./2025 Bijendra Kumar 3 statutory amendment in section 57(iv) r.w.s. 56 r.w.s. 145A(b) of the Act. 7. Faced with this situation, the Revenue could hardly dispute that no valuable guidance on the instant issue of taxability of interest income on enhanced compensation has come from hon’ble jurisdictional high court at Allahabad. That being the case, we hereby quote CIT Vs. Vegetable Products Ltd. (1973) 88 ITR 192 (SC) to decide the issue in the assessee’s favour in very terms. Both the learned lower authorities’ action holding the assessee’s interest income on enhanced land acquisition compensation as taxable stands reversed therefore. 8. This assessee’s appeal is allowed. Order Pronounced in the Open Court on 19/11/2025. Sd/- Sd/- (S. Rifaur Rahman) (Satbeer Singh Godara) Accountant Member Judicial Member Dated: 19/11/2025 *Subodh Kumar, Sr. PS* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR Printed from counselvise.com "