DCIT, Circle, Sirsa V. Sh. Vaibhav Choudhary, Fatehabad

ITA 175/CHANDI/2019

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 3116 (ITAT-CHANDIGARH)
• Duration Of Justice: 8 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-10-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2015-2016
• Appeal Filed On: 14-02-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 145; 6; 56; 28; 45(5); 56(2)

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, B CHANDIGARH , !' #$ % & ' ($ , )* BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND MS. ANNAPURNA GUPTA, ACCOUNTANT MEMBER ./ ITA NO. 175/CHD/2019 / ASSESSMENT YEAR : 2015-16 THE DCIT, SIRSA CIRCLE, SIRSA SHRI VAIBHAV CHAUDHARY, SO SHRI VIJAY CHAUDHARY , NEAR RATIA TRI CROSSING, FATEHABAD ./PAN NO: AEKPC8527N / APPELLANT /RESPONDENT ! /ASSESSEE BY : SHRI MANJIT SINGH, CIT DR ' ! / REVENUE BY : SHRI TEJ MOHAN SINGH, ADVOCATE # $ % /DATE OF HEARING : 30.10.2019 &'() % / DATE OF PRONOUNCEMENT : 30.10.2019 )+/ ORDER PER SANJAY GARG, JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE DEPART MENT AGAINST THE ORDER DATED 27.11.2018 OF THE COMMISSIONER OF INCOME TAX (APPEALS) HISAR [HEREINAFTER REFERRED TO AS CIT(A )] 2. THIS APPEAL IS RELATING TO THE TAXABILITY OF THE INTEREST RECEIVED ON ENHANCED COMPENSATION U/S 28 OF THE LAND ACQUISITIO N ACT, 1894. THE LD. CIT(A) DELETED THE ADDITIONS SO MADE BY THE ASSESSI NG OFFICER IN RESPECT OF THE INTEREST INCOME ON ENHANCED COMPENSATION U/S 28 OF THE AFORESAID ACT ITA NO. 175/CHD/2019- SHRI VAIBHAV CHAUDHARY, FATEHABAD 2 WHILE RELYING ON THE DECISION OF THE HON'BLE SUPR EME COURT IN THE CASE OF CIT V GHANSHYAM 'HUF' 315 ITR 1 (SC), WHEREIN, I T HAS BEEN HELD THAT THE INTEREST PAID ON THE EXCESS AMOUNT U/S 28 OF LAND ACQUISITION ACT, 1894 IS PART OF ENHANCED VALUE OF THE LAND AND AS SUCH THE SAME IS NOT TAXABLE AS INTEREST INCOME U/S 34 OF THE SAID ACT. THE LD. C IT(A) HAS RELIED ON THE DECISION OF THE HON'BLE SUPREME COURT IN THE CASE O F CIT VS HARI SINGH AND ORS IN CIVIL APPEAL NO. 15041 OF 2017 VIDE ORDER D ATED 15.9.2017. THE LD. CIT(A) HAS ALSO RELIED ON THE DECISION OF THE COORD INATE CHANDIGARH BENCH OF THE TRIBUNAL DATED 17.7.2018 IN SOM NATH V ITO ITA NO.552/CHD/2016. THE RELEVANT PART OF THE ORDER OF THE CIT(A) IS REP RODUCED AS UNDER:- 5.3 I HAVE GONE THROUGH THE FACTS OF THE CASE AND WRITT EN SUBMISSION FILED BY THE APPELLANT. IT IS OBSERVED THAT THE HON'BLE SUPREME COURT IN THE CASE OF CIT V/S GHANSH YAM (HUF) 315 ITR 1 HAS HELD THAT INTEREST PAID ON THE EXCESS AMOUNT, U/S 28 OF 1894 ACT, DEPENDS UPON A CLAIM BY THE PERSON WHOSE LAND IS ACQUIRED WHEREAS INTEREST U/S 34 IS F OR DELAY IN MAKING PAYMENT. INTEREST U/S 28 IS A PART OF ENHANC ED VALUE OF LAND WHICH IS NOT THE CASE IN THE MATTER OF PAYMENT OF INTEREST U/S 34. THE RELEVANT EXTRACT FROM THE DECISION OF T HE HON'BLE APEX COURT IN GHANSHYAM(HUF) SUPRA IS QUOTED AS UND ER:- '54. SECTION 45(5) READ AS A WHOLE [INCLUDING CLAUS E (C)] NOT ONLY DEALS WITH REWORKING AS URGED ON BEHALF OF THE ASSESSEE BUT ALSO WITH THE CHANGE IN THE FULL VALUE OF THE CONSIDERATION (COMPUTATION) AND SINCE THE ENHANCED COMPENSATION/ CONSIDERATION (INCLUDING INTEREST UND ER SECTION 28 OF THE 1894 ACT) BECOMES PAYABLE/PAID UN DER THE 1894 ACT AT DIFFERENT STAGES, THE RECEIPT OF SU CH ENHANCED OMPENSATION/CONSIDERATION IS TO BE TAXED I N THE YEAR OF RECEIPT SUBJECT TO ADJUSTMENT, IF ANY, UNDE R SECTION 155(16) OF THE 1961 ACT, LATER ON. HENCE, T HE YEAR IN WHICH ENHANCED COMPENSATION IS RECEIVED IS THE Y EAR OF ITA NO. 175/CHD/2019- SHRI VAIBHAV CHAUDHARY, FATEHABAD 3 TAXABILITY. CONSEQUENTLY, EVEN IN CASES WHERE PENDI NG APPEAL, THE K COURT/TRIBUNAL/AUTHORITY BEFORE WHICH APPEAL IS PENDING, PERMITS THE CLAIMANT TO WITHDRAW AGAINS T SECURITY OR OTHERWISE THE ENHANCED COMPENSATION (WH ICH IS IN DISPUTE), THE SAME IS LIABLE TO BE TAXED UNDE R SECTION 45(5) OF THE 1961 ACT. THIS IS THE SCHEME OF SECTIO N 45(5) AND SECTION 155(16) OF THE 1961 ACT. WE MAY CLARIFY THAT EVEN BEFORE THE INSERTION OF SECTION 45(5)(C) AND S ECTION 155(16) W.E.F. 1-4-2004, THE RECEIPT OF ENHANCED COMPENSATION UNDER SECTION 45(5) (B) WAS TAXABLE IN THE YEAR OF RECEIPT WHICH IS ONLY REINFORCED BY INSERTI ON OF CLAUSE (C) BECAUSE THE RIGHT TO RECEIVE PAYMENT UND ER THE 1894 ACT IS NOT IN DOUBT. 55. IT IS IMPORTANT TO NOTE THAT COMPENSATION, INCL UDING ENHANCED COMPENSATION/CONSIDERATION UNDER THE 1894 ACT, IS BASED ON THE FULL VALUE OF PROPERTY AS ON T HE DATE OF NOTIFICATION UNDER SECTION 4 OF THAT ACT. WHEN T HE COURT/TRIBUNAL DIRECTS PAYMENT OF ENHANCED COMPENSA TION UNDER SECTION 23(1-A), OR SECTION 23(2) OR UNDER SE CTION 28 OF THE 1894 ACT IT IS ON THE BASIS THAT AWARD OF THE COLLECTOR OR THE COURT, UNDER REFERENCE, HAS NOT COMPENSATED THE OWNER FOR THE FULL VALUE OF THE PRO PERTY AS ON DATE OF NOTIFICATION.' 5.4 THE AO HAS HELD THAT SUBSEQUENT TO AMENDMENT BROUGHT IN BY FINANCE (NO.2) ACT 2009 WHEREBY CLAUSE (VIII) HA D BEEN INSERTED IN SECTION 56(2) AND SECTION 145 A HAVING BEEN SUBSTITUTED, INTEREST RECEIVED ON ENHANCED COMPENSA TION U/S 28 OF THE LAND ACQUISITION ACT WAS ALSO TAXABLE UNDER SECTION 56(2)(VIII) OF THE ACT AFTER ALLOWING 50% DEDUCTION U/S 57(IV) OF THE ACT. 5.5 THE SUBSTITUTION OF SECTION 145A BY FINANCE (N O.2) ACT, 2009 WAS NOT IN CONNECTION WITH THE DECISION OF THE HON'BLE SUPREME COURT IN GHANSHYAM (HUF) (SUPRA) BUT WAS BR OUGHT IN TO MITIGATE THE HARDSHIP CAUSED TO THE ASSESSEE ON ACCOUNT OF THE DECISION OF THE SUPREME COURT IN SMT. RAMA BAI V. CIT, (1990) 181 ITR 400 (SC) WHEREBY IT WAS HELD THAT AR REARS OF INTEREST COMPUTED ON DELAYED OR ENHANCED COMPENSATI ON SHALL ITA NO. 175/CHD/2019- SHRI VAIBHAV CHAUDHARY, FATEHABAD 4 BE TAXABLE ON ACCRUAL BASIS. THEREFORE, WHEN ONE RE ADS THE WORDS 'INTEREST RECEIVED ON COMPENSATION OR ENHANCE D COMPENSATION' IN SECTION 145A OF THE I.T. ACT, THE SAME HAVE TO BE CONSTRUED IN THE MANNER INTERPRETED BY THE HON'B LE SUPREME COURT IN GHANSHYAM (HUF) (SUPRA). THEREFORE, INTERE ST U/S 28 OF LAND ACQUISITION ACT, 1894 IS NOT COVERED BY THE TERM 'INTEREST' UNDER SECTION 56(2)(VIII) AND 145A(B). I T MUST BE CONSTRUED AS COMPENSATION. 5.6 ALTHOUGH THE HON'BLE PUNJAB & HARYANA HIGH CO URT CONSIDERED THIS ISSUE IN THE CASES OF MANJEET SINGH (HUF) KARTA MANJEET SINGH VS UNION OF INDIA AND ORS. CWP NO. 15506 OF 2013 DATED 14.01.2014 (2016) 237 TAXMANN 1 16 AND SUNDER LAI AND ANR. VS UNION OF INDIA CWP NO.2014 O F 2015 VIDE ORDER DATED 21.09.2015 AND HELD THAT INTEREST RECEIVED U/S 28 OF THE LAND ACQUISITION ACT IS IN THE NATURE OF INTEREST AND IS TAXABLE BUT RECENTLY THE ISSUE WAS ONCE AGAIN DE CIDED BY THE HON'BLE SUPREME COURT VIDE ITS ORDER DATED 15.09.20 17 IN THE CASE OF UNION OF INDIA VS HARI SINGH AND ORS. IN CI VIL APPEAL NO. 15041 OF 2017. IN THIS DECISION, THE HON'BLE SU PREME COURT HELD AS UNDER:- 'WHILE DETERMINING AS TO WHETHER THE COMPENSATION PAID WAS FOR AGRICULTURAL LAND OR NOT, THE AOS WILL KEEP IN MIND THE PROVISIONS OF SECTION 28 OF THE LAND ACQUISITION ACT AND THE LAW LAID DOWN BY THIS COURT IN COMMISSIONER OF INCOME TAX, FARIDABAD V. GHANSHYAM (HUF) (2009 (8) SCC 412) IN ORDER TO ASCERTAIN WHETHER THE INTEREST GIVEN UNDER THE SAID PROVISIONS AMOUNTS TO COMPENSATION OR NOT.' 5.7 THE JURISDICTIONAL ITAT, CHANDIGARH IN ITS D ECISION OF 17.07.2018 IN SOM NATH VS. ITO, ITA NO.552/CHD/2016 DISCUSSING HON'BLE PUNJAB & HARYANA HIGH COURT DECI SIONS IN THE CASE OF MANJEET SINGH (HUF) AND THE HARI SINGH CASE (SUPRA) HELD THAT THE PROPOSITION LAID DOWN BY HON' BLE APEX COURT IN GHANSHYAM HUF (SUPRA) IS THE LAW OF THE LA ND AND INTEREST RECEIVED ON COMPULSORY ACQUISITION OF LAND U/S 28 OF LAND ACQUISITION ACT IS IN THE NATURE OF COMPENSATI ON AND IS NOT TAXABLE U/S 56 OF THE ACT. FURTHER THE JURISDIC TIONAL ITAT IN ITA NO. 175/CHD/2019- SHRI VAIBHAV CHAUDHARY, FATEHABAD 5 ITS RECENT COMMON ORDER, DATED 04.10.2018 IN A GROU P OF CASES OF VARIOUS APPELLANTS NAMELY SH. SURINDER KUMAR AND OTHERS IN ITA NO. 539 TO 543/CHD/2016, ITA NO.673/CHD/2016, ITA NO.547 TO 551/CHD/2016, ITA NO.368/CHD/2014, ITA NO.948/CHD/2016 AND ITA NO.949/CHD/2016 HAS DISCUSSED THE ISSUE OF TAXABILI TY OF INTEREST U/S 28 RECEIVED ON ENHANCED COMPENSATION O N LANDS COMPULSORILY ACQUIRED BY THE GOVERNMENT AS UNDER: 7. THE CORE GROUND INVOLVED IN THESE APPEALS IS REGARDING THE TAXABILITY OF INTEREST RECEIVED ON EN HANCED COMPENSATION U/S 28 OF THE LAND ACQUISITION ACT, 18 94. NOW, THERE ARE TWO QUESTIONS INVOLVED IN THESE APPE ALS, FIRST ISSUE IS REGARDING THE YEAR OF TAXABILITY OF THE INTEREST INCOME WHETHER IT HAS TO TAXED IN THE YEAR OF RECEIPT IN THE LIGHT OF THE DECISION OF THE HON'BLE SUPREME COURT IN THE CASE OF GHANSHYAM (HUF) (SUPRA) OR IS TO BE TAXED ON THE BASIS OF APPORTIONMENT FOR EACH YEAR F ROM THE DATE OF ACQUISITION OF LANDS TILL THE RECEIPT O F THE COMPENSATION IN THE LIGHT OF THE DECISION OF THE HO N'BLE SUPREME COURT IN THE CASE OF RAMA BAI (SUPRA); THE SECOND ISSUE INVOLVED IS AS TO WHETHER THE INTEREST AWARDED U/S 28 OF THE LAND ACQUISITION ACT ON ENHAN CED COMPENSATION IS TO BE TREATED AS PART OF THE ENHANC ED COMPENSATION AND WILL NOT BE TAXABLE SEPARATELY AS INTEREST INCOME UNDER THE HEAD INCOME FROM OTHER SOURCES? 8. WE FIND THAT BOTH THESE ISSUES ARE COVERED BY TH E AFORESAID DECISION OF THE HON'BLE SUPREME COURT IN THE CASE OF GHANSHYAM (HUF) (SUPRA) HOLDING THE SAME TO BE IN THE NATURE OF COMPENSATION ITSELF. THE COURT ALS O DEALT WITH THE OTHER ASPECT NAMELY, THE YEAR OF TAX AND ANSWERED THIS QUESTION BY HOLDING THAT IT HAS TO BE TESTED ON RECEIPT BASIS, WHICH MEANS IT WOULD BE TAXED IN THE YEAR IN 8 WHICH IT IS RECEIVED. THE SAID FINDINGS G IVEN IN THE CASE OF GHANSHYAM (HUF) (SUPRA) HAVE BEEN REITERATED BY THE HON'BLE SUPREME COURT IN THE CASE OF GOVINDBHAI MAMAIYA (SUPRA) OBSERVING AS UNDER: ITA NO. 175/CHD/2019- SHRI VAIBHAV CHAUDHARY, FATEHABAD 6 IN SO FAR AS THE SECOND QUESTION IS CONCERNED, THA T IS ALSO COVERED BY ANOTHER JUDGMENT OF THIS COURT IN COMMIS SIONER OF INCOME TAX, FARIDABAD VS. GHANSHYAM (HUF) REPORT ED IN (2009) 8 SCC 412, 6 ALBEIT, IN FAVOUR OF THE REVENU E. IN THAT CASE, THE COURT DREW DISTINCTION BETWEEN THE INTER EST EARNED UNDER SECTION 28 OF THE LAND ACQUISITION ACT AND THE INTEREST WHICH IS UNDER SECTION 34 OF THE SAID AC T. THE COURT CLARIFIED THAT WHEREAS COMPENSATION GIVEN TO THE ASSESSEE OF THE LAND ACQUIRED WOULD BE 'INCOME', TH E ENHANCED COMPENSATION/CONSIDERATION BECOMES INCOME BY VIRTUE OF SECTION 45(5)(B) OF THE INCOME TAX ACT. T HE QUESTION WAS WHETHER IT WILL COVER INTEREST AND IF SO, WHA T WOULD BE THE YEAR OF TAXABILITY. THE POSITION IN THIS RESPEC T IS EXPLAINED IN PARAS 49 AND 50 OF THE JUDGMENT WHICH MAKE THE F OLLOWING READING: 49. AS DISCUSSED HEREINABOVE, SECTION 23(1-A) PROVIDES FOR ADDITIONAL AMOUNT. IT TAKES CARE OF TH E INCREASE IN THE VALUE AT THE RATE OF 12% PER ANNUM. SIMILARLY, UNDER SECTION 23(2) OF THE 1894 ACT THER E IS A PROVISION FOR SOLATIUM WHICH ALSO REPRESENTS PART OF THE ENHANCED COMPENSATION. SIMILARLY, SECTION 28 EMPOWERS THE COURT IN ITS DISCRETION TO AWARD INTER EST ON THE EXCESS AMOUNT OF COMPENSATION OVER AND ABOVE WHAT IS AWARDED BY THE COLLECTOR. IT INCLUDES ADDITIONAL AMOUNT UNDER SECTION 23(1-A) AND SOLATIU M UNDER SECTION 23(2) OF THE SAID ACT. SECTION 28 OF THE 1894 ACT APPLIES ONLY IN RESPECT OF THE EXCESS AMOU NT DETERMINED BY THE COURT AFTER REFERENCE UNDER SECTI ON 18 OF THE 1894 ACT. IT DEPENDS UPON THE CLAIM, UNLI KE INTEREST UNDER SECTION 34 WHICH DEPENDS ON UNDUE DELAY IN MAKING THE AWARD. 50. IT IS TRUE THAT INTEREST IS NOT COMPENSATION. IT IS EQUALLY TRUE THAT SECTION 45(5) OF THE 1961 ACT REF ERS TO COMPENSATION. BUT AS DISCUSSED HEREINABOVE, WE HAVE TO GO BY THE PROVISIONS OF THE 1894 ACT WHICH AWARDS INTEREST BOTH AS AN ACCRETION IN THE VALUE OF THE LANDS ACQUIRED AND INTEREST FOR UNDUE DELAY. INTEREST UNDER SECTION 28 UNLIKE INTEREST UNDER SEC TION 34 IS AN ACCRETION TO THE VALUE, HENCE IT IS A PART OF ITA NO. 175/CHD/2019- SHRI VAIBHAV CHAUDHARY, FATEHABAD 7 ENHANCED COMPENSATION OR CONSIDERATION WHICH IS NOT THE CASE WITH INTEREST UNDER SECTION 34 OF THE 1894 ACT. SO ALSO ADDITIONAL AMOUNT UNDER SECTION 23 (1-A) AN D SOLATIUM UNDER SECTION 23(2) OF THE 1961 ACT FORMS PART OF ENHANCED COMPENSATION UNDER SECTION 45(5)(B ) OF THE 1961 ACT. 8. IT IS CLEAR FROM THE ABOVE THAT WHEREAS INTEREST UNDER SECTION 34 IS NOT TREATED AS A PART OF INCOME SUBJECT TO TAX, THE INTEREST EARNED UNDER SECTION 28, WHICH IS ON ENHANCED COMPENSATION, IS TREATED AS A ACCRETION TO THE VALU E AND THEREFORE, PART OF THE ENHANCED COMPENSATION OR CONSIDERATION MAKING IT EXIGIBLE TO TAX. AFTER HOLD ING THAT INTEREST ON ENHANCED COMPENSATION UNDER SECTION 28 OF 1894 ACT IS TAXABLE, THE COURT DEALT WITH THE OTHER ASPECT NAMELY, THE YEAR OF TAX AND ANSWERED THIS QUESTION BY HOLDING THAT IT HAS TO BE TESTED ON RECEIPT BASIS, WHICH MEANS IT WOULD BE TAXED IN THE YEAR IN WHICH IT IS RECEIVED. IT WOULD MEAN THAT CONVERSE POSITION I.E. SPREAD OVER OF THIS INTEREST ON ACCRUAL BASIS IS NOT PERMI SSIBLE. 9. THE LD. COUNSELS FOR ASSESSEE HAS FURTHER BROUGH T OUR ATTENTION THE LATEST DECISION OF THE HON'BLE SUPREM E COURT IN THE CASE OF CIT VS. CHET RAM (HUF) DATED 12.9.2017 IN CIVIL APPEAL NO.13053/2017 WHEREIN ALS O THE HON'BLE SUPREME COURT HAS AGAIN REITERATED THE PROPOSITION LAID DOWN IN THE CASE OF GHANSHYAM (HUF ) (SUPRA), WHICH WE FIND HAS BEEN FURTHER REITERATED IN THE CASE OF UNION OF INDIA VS. HARI SINGH & OTHERS IN C IVIL APPEAL NO. 1504 OF 2017 DATED 15.9.2017, AS UNDER: (2) WHILE DETERMINING AS TO WHETHER THE COMPENSATION PAID WAS FOR AGRICULTURAL LAND OR NOT, THE ASSESSING OFFICER(S) WILL KEEP IN MIND THE PROVISIONS OF SECTION 28 OF THE LAND ACQUISITION AC T AND THE LAW LAID DOWN BY THIS COURT IN 'COMMISSIONER OF INCOME TAX, FARIDABAD V. GHANSHYAM (HUF)' [2009 (8) SCC 412] IN ORDER TO ASCERTAIN WHETHER THE INTEREST GIVEN UNDER THE SAID PROVISION AMOUNTS TO COMPENSATION OR NOT. 9.1 THE SAID DECISION AS RIGHTLY POINTED OUT BY T HE LD. COUNSEL FOR ASSESSEE HAVE BEEN RENDERED BY THE HON' BLE ITA NO. 175/CHD/2019- SHRI VAIBHAV CHAUDHARY, FATEHABAD 8 APEX COURT SUBSEQUENT TO THE DECISION PASSED BY THE HON'BLE JURISDICTIONAL HIGH COURT IN THE CASE OF MA NJEET SINGH(HUF) (SUPRA) WHICH HAD DEALT WITH THE DECISIO NS OF THE HON'BLE APEX COURT IN GHANSHYAM, HUF (SUPRA). THEREFORE, IN VIEW OF THE SAME, THE PROPOSITION LAI D DOWN IN GHANSHYAM, HUF (SUPRA) REMAINS AND WHICH HAVING BEEN LAID DOWN BY THE HON'BLE APEX COURT IS THE LAW OF THE LAND AND HAS TO BE FOLLOWED BY ALL LOWER AUTHOR ITIES. IN VIEW OF THE ABOVE, WE HOLD THAT THE INTEREST REC EIVED BY THE ASSESSEE DURING THE IMPUGNED YEAR ON THE COMPUL SORY ACQUISITION OF ITS LAND U/S 28 OF THE LAND ACQUISIT ION ACT, IS IN THE NATURE OF COMPENSATION AND NOT INTEREST W HICH IS TAXABLE UNDER THE HEAD INCOME FROM OTHER SOURCES U/ S 56 OF THE ACT AS HELD BY THE AUTHORITIES BELOW. THE COMPENSATION BEING EXEMPT U/S 10(37) OF THE ACT IS NOT DISPUTED. IN VIEW OF THE SAME THE ORDER PASSED BY T HE CIT(APPEALS) UPHOLDING THE ADDITION MADE BY THE AO ON ACCOUNT OF INTEREST ON ENHANCED COMPENSATION IS, NO T SUSTAINABLE. THE RATIO OF THE ORDER LAID DOWN VIDE ORDER DT. 09/07/2018 IN A GROUP OF CASES IN ITA NO. 1413 TO 1437/CHD/2016 WOULD APPLY MUTATIS-MUTANDIS TO THE CORE ISSUE OF TAXABILITY OF INTEREST RECEIVED ON EN HANCED COMPENSATION. 10. IN VIEW OF THE ABOVE DISCUSSION, THESE APPEALS OF THE ASSESSEES ARE HEREBY ALLOWED. 5.8 IN VIEW OF THE ABOVE FACTS AND THE DISCUSSION IN THE FOREGOING PARAS, IT IS HELD THAT INTEREST ON ENHANC ED COMPENSATION, RECEIVED U/S 28 OF THE LAND ACQUISITI ON ACT BY THE APPELLANT IS IN THE NATURE OF COMPENSATION AND IS EXEMPT UNDER THE PROVISION OF SECTION 10(37) OF THE I.T. A CT, PLACING RELIANCE ON THE DECISIONS OF JURISDICTIONAL ITAT IN SOM NATH (SUPRA) AND SURINDER KUMAR (SUPRA) WHEREIN THE TRIB UNAL HAVE RELIED ON THE DECISIONS OF THE HON'BLE APEX COURT I N THE CASE OF GHANSHYAM (HUF), GOVINDBHAI MAMAIYA AND HARI SINGH ORS. (SUPRA) BEING THE LAW OF THE LAND. THEREFORE, ADDIT ION OF RS. 3,29,32,586/- MADE BY THE ASSESSING OFFICER U/S 56( 2) (VIII) OF THE I.T. ACT, AFTER DEDUCTION U/S 57(IV) OF THE ACT BEING INTEREST RECEIVED BY APPELLANT U/S 28 OF THE LAND ACQUISITIO N ACT AND FORMING PART OF ENHANCED COMPENSATION ON ACQUISITIO N OF ITA NO. 175/CHD/2019- SHRI VAIBHAV CHAUDHARY, FATEHABAD 9 AGRICULTURAL LAND, IS ORDERED TO BE DELETED. IT IS NOT MATERIAL WHETHER THE APPELLANT ASSESSEE HID AGREED TO THE TA XING OF THE SUM UNDER SECTION 56(2)(VIII) BECAUSE THERE CANNOT BE ANY ADMISSION AGAINST THE STATUTE AND ONLY CORRECT INCO ME HAS TO BE BROUGHT TO TAX . THIS GROUND OF APPEAL IS ALLOWED. . THOUGH THE LD. DR RELIED ON THE FINDINGS OF THE ASSESSING OFFICER, HOWEVER, COULD NOT REBUT THE ARGUMENTS OF THE LD. C OUNSEL FOR THE ASSESSEE THAT THE ISSUE IS SQUARELY COVERED BY THE ABOVE DEC ISION OF THE HON'BLE SUPREME COURT AS WELL AS OF THE COORDINATE BENCH OF THE TRIBUNAL (SUPRA). IN VIEW OF THIS, WE DO NOT FIND ANY MERIT IN THE AP PEAL OF THE REVENUE AND THE SAME IS ACCORDINGLY DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 30.20.2019. SD/- SD/- ( % & ' ($ / ANNAPURNA GUPTA) )* / ACCOUNTANT MEMBER ( / SANJAY GARG) / JUDICIAL MEMBER DATED : 30.10.2019 .. '+ ,- .- / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. # / / CIT 4. # / ( )/ THE CIT(A) 5. -01 2 , % 2 , 34516 / DR, ITAT, CHANDIGARH 6. 15 7$ / GUARD FILE '+ # / BY ORDER, 8 ' / ASSISTANT REGISTRAR