GOBINDA KUMURA,BANGURKELA V. INCOME TAX OFFICER, JHARSUGUDA

ITA 609/CTK/2025

AI Insights

The case involves an appeal by Gobinda Kumura against the order of the CIT(A), NFAC, Delhi, which confirmed the addition of Rs.19,96,996 to the assessee's income for the assessment year 2018-19. This amount was treated as interest on compensation received for the acquisition of his ancestral agricultural land by Mahanadi Coalfield Ltd. The primary contention was whether this amount constituted taxable income. The tribunal examined the compensation certificate and found that the entire amount was compensation for land acquisition and not interest, thus not taxable under the relevant provisions.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 839819 (ITAT-CUTTACK)
• Duration Of Justice: 3 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2018-2019
• Appeal Filed On: 01-11-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANJIB BANERJEE; LD
• Assessee Lawyers: ANIL KR AGARWAL
• Keywords: TDS; FORM 26AS

Judgement Text

"1 आयकर अपील सं/ITA No.609/CTK/2025 (Ǔनधा[रण वष[ / Assessment Year : 2018-19) IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK BENCH CUTTACK BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI MADHUSUDAN SAWDIA, ACCOUNTANT MEMBER आयकर अपील सं/ITA No.609/CTK/2025 (Ǔनधा[रण वष[ / Assessment Year : 2018-19) Gobinda Kumura, Bangurkela, Balinga, Basundhara, Sundargarh Vs Income Tax officer, Jharsuguda PAN No. : DKHPK 5459 K (अपीलाथȸ /Appellant) .. (Ĥ×यथȸ / Respondent) Ǔनधा[ǐरती कȧ ओर से /Assessee by : Shri Anil Kr Agarwal, CA राजèव कȧ ओर से /Revenue by : Shri Sanjib Banerjee, ld Sr DR सुनवाई कȧ तारȣख / Date of Hearing : 23/02/2026 घोषणा कȧ तारȣख/Date of Pronouncement : 23/02/2026 आदेश / O R D E R Per Bench : This is an appeal filed by the assessee against the order dated 3.9.2025 passed by CIT(A), NFAC, Delhi in Appeal No.NAFC/2017-18/10220297 for the assessment year 2018-19. 2. Shri Anil Kumar Agarwal, ld AR appeared for the assessee and Shri Sanjib Banerjee, ld Sr DR appeared for the revenue. 3. It was submitted by ld AR that the only issue in this appeal was against an addition of Rs.19,96,996.00, which has been treated by the Assessing Officer as interest on the compensation awarded to the assessee. It was the submission that the assessee is an agriculturist. The ancestral property of the assessee had been Printed from counselvise.com 2 आयकर अपील सं/ITA No.609/CTK/2025 (Ǔनधा[रण वष[ / Assessment Year : 2018-19) acquired by the Mahanadi Coalfield Ltd., and the assessee was awarded total compensation of Rs.61,73,207.39 towards land and Rs.59,29,999.39 was credited in the bank account of the assessee on 13.7.2017 after deduction of TDS u/s 194A of the Act. The TDS deduction was Rs.2,43,208/- on the amount of Rs.24,32,082.21 as per Form 26AS. The Assessing Officer brought to tax Rs.19,96,996/- towards interest received on the ground that there was variation between the amount disclosed by the assessee and the amount shown in Form 26AS. 4. Ld AR placed before us the copy of the compensation (translated in English) as received by the assessee which reads as under: “ Printed from counselvise.com 3 आयकर अपील सं/ITA No.609/CTK/2025 (Ǔनधा[रण वष[ / Assessment Year : 2018-19) 5. The original certificate issued in Odia language reads as follows: “ Printed from counselvise.com 4 आयकर अपील सं/ITA No.609/CTK/2025 (Ǔनधा[रण वष[ / Assessment Year : 2018-19) 6. It was the submission that the total compensation amount is Rs.61,73,207.39 and there is no interest component shown in the said notice of the compensation. It was the submission that there are no interest portion and the entire compensation received by the assessee would not be taxable as the same is in the compulsory acquisition of agricultural land by Mahanadi Coalfield Ltd. 7. In reply, ld Sr DR submitted that the bank account statement supplied by the assessee was not certified by the bank and the English translated copy of the compensation was not provided before the ld CIT(A). He vehemently supported the order of the Assessing Officer and ld CIT(A). 8. We have considered the rival submissions. A perusal of the compensation order as issued by Mahanadi Coalfield Limited (MCL) clearly shows the entire amount of Rs.61,73,207.39 as compensation on the acquisition of agricultural land, which is also ancestral land of the assessee. This being so, as the compensation certificate issued by MCL clearly shows that the amount is of compensation, same goes out of the tax in view of the fact that what has been acquired by MCL is agricultural land. This being so, the addition as made by the Assessing Officer and confirmed by ld CIT(A) stands deleted. 7. In the result, appeal of the assessee stands allowed. Order dictated and pronounced in the open court on 23/02/2026. Sd/- (MADHUSUDAN SAWDIA) Sd/- (GEORGE MATHAN) ACCOUNTANT MEMBER JUDICIAL MEMBER Ǒदनांक Dated 23/02/2026 Amit Ranjan, Sr.PS Printed from counselvise.com 5 आयकर अपील सं/ITA No.609/CTK/2025 (Ǔनधा[रण वष[ / Assessment Year : 2018-19) आदेश कȧ ĤǓतͧलͪप अĒेͪषत/Copy of the Order forwarded to : आदेशानुसार/ BY ORDER, (Assistant Registrar) आयकर अपीलȣय अͬधकरण, कटक/ITAT, Cuttack 1. अपीलाथȸ / The Appellant- Gobinda Kumura, Bangurkela, Balinga, Basundhara, Sundargarh 2. Ĥ×यथȸ / The Respondent- ITO,Jharsuguda 3. आयकर आयुÈत(अपील) / The CIT(A), NFAC Delhi 4. आयकर आयुÈत / CIT , Sambalpur 5. ͪवभागीय ĤǓतǓनͬध, आयकर अपीलȣय अͬधकरण, कटक / DR, ITAT, Cuttack 6. गाड[ फाईल / Guard file. स×याͪपत ĤǓत //True Copy// Printed from counselvise.com "