Shivkant Nagappa Lasune, Latur V. Income-Tax Officeer, Ward -3, Latur

ITA 285/PUN/2021

• Counselvise Citation: [2022] 104 COUNSELVISE.COM (IT) 0174 (ITAT-PUNE)
• Duration Of Justice: 1 year(s) 3 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-10-2022
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 10-10-2022
• Assessment Year: 2013-2014
• Appeal Filed On: 29-06-2021
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 28; 144

Judgement Text

आयकर अपीलीय अधधकरण “बी” न्यायपीठ पुणे में । IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, PUNE BEFORE SHRI S.S.GODARA, JM AND SHRI DR. DIPAK P. RIPOTE, AM आयकर अपील सं. / ITA No.285/PUN/2021 धनधाारण वषा / Assessment Year : 2013-14 Shivkant Nagappa Lasune, Mahadeo Galli, Ahmedpur, Latur – 413 515 PAN : ADUPL0156D .......अपीलाथी / Appellant बनाम / V/s. ITO, Ward -3 Latur .......प्रत्यथी / Respondent Assessee by : Shri M.K. Kulkarni Revenue by : Shri M.G.Jasnani सुनवाई की तारीख / Date of Hearing : 11.10.2022 घोषणा की तारीख / Date of Pronouncement : 19.10.2022 आदेश / ORDER PER S. S. GODARA, JM : 1. This assessee’s appeal for A.Y. 2013-14 is directed against the CIT(A)-2, Pune’s order dated 08/08/2019 passed in case No.ABD/CIT(A)-2/358/ 2017- 18 involving proceedings u/s. 144 r.w.s.147 of the Income Tax Act, 1961; in short "the Act”. Heard both the parties. Case file perused. 2. It emerges during the course of hearing that sole substantive issue which arise for our apt adjudication is that of the correctness of the both the lower appellate authorities action invoking section 56(2)(viii) r.w.s 57 (iv) 2 ITA No.285/PUN/2021 A.Y. : 2013-14 Shivkant Nagappa Lasune, , r.w.s. 145 (B)(1) interest income addition of Rs.25,16,539/- at rate of 50% of the total interest amount received to the tune of Rs.50,33,078/-, made in the course of assessment 28.11.2016 as upheld in the CIT(A) order. 3. Mr. Kulkarni vehemently argued that both the lower authorities have erred in assessing impugned income despite the fact that the assessee is entitled for Section 10(37) exemption as this is a case of compulsory acquisition of is lands. He also quotes CBDT Circular number 36 dated 25.10.2016: (2016) 388 ITR 48-49 (57) that such an interest income received under Rights To Fair Compensation and Transport in Land Acquisition Rehabilitilisation Act 2013 “RFCTLARR ACT” in support. We find no merit in the assessee’s instant arguments as it has already come on record that his lands had been acquired vide Government notification dated 21.01.2006 than the forgoing “RFCTLARR ACT”. Learned counsel’s arguments are rejected accordingly. 4. The assessee next contended that both the lower authorities have wrongly denied section 10(37) exemption to the assessee regarding the impugned interest income. This latter argument raised at the assessee’s behest also goes against CIT(A) detailed discussion wherein he has already held that interest received under section 28 of the land acquisition Act 1894 forms part of the enhanced compensation or consideration in light of CIT Vs. Ghanshyam (HUF) 2009 315 ITR 1 (SC) and therefore entitled for section 3 ITA No.285/PUN/2021 A.Y. : 2013-14 Shivkant Nagappa Lasune, , 10(37) relief. The assessee has succeeded in his corresponding arguments in para 18 of the CIT(A) detailed discussion. 5. Coming to the assessee’s interest income covered u/s.34 of the land acquisition Act, we note that the very judicial precedent hereinabove has already settled the law that the latter component represents interest on account of delay in payment of the former limb of compensation which is not covered u/s.10(37) Explanation. We therefore conclude in this clinching factual background the CIT(A) has rightly directed the Assessing Officer to get the detailed break up of assessee’s interest income involving combined figure of Rs.50,33,078/- from the Special Land Acquisition Officer and restrict section 10(37) exemption relief only qua the interest component u/s.28 of the land acquisition act. The assessee fails in his sole substantive grounds; ordered accordingly. Delay of 597 days in filing of instant appeal instituted on 30.06.2021 stands condoned since mainly falling in covid-19 pandemic outbreak period. 6. This assessee’s appeal is dismissed in above terms. Order pronounced in the Open Court on this 19 th day of October, 2022. Sd/- Sd/- (DR.DIPAK P.RIPOTE) (S.S. GODARA) लेखा सदस्य/ ACCOUNTANT MEMBER न्याधयक सदस्य/JUDICIAL MEMBER पुणे / Pune; ददनांक / Dated : 19 th October, 2022. Ashwini 4 ITA No.285/PUN/2021 A.Y. : 2013-14 Shivkant Nagappa Lasune, , आदेश की प्रधतधलधप अग्रेधषत / Copy of the Order forwarded to : 1. अपीलाथी / The Appellant. 2. प्रत्यथी / The Respondent. 3. The CIT(A)-2, Aurangabad. 4. The Pr.CIT-2, Aurangabad. 5. धवभागीय प्रधतधनधध, आयकर अपीलीय अधधकरण, “बी” बेंच, पुणे / DR, ITAT, “B” Bench, Pune. 6. गार्ा फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अधधकरण, पुणे / ITAT, Pune. 5 ITA No.285/PUN/2021 A.Y. : 2013-14 Shivkant Nagappa Lasune, , S.No. Details Date Initials 1 Draft dictated on 11.10.2022 2 Draft placed before author 19.10.2022 3 Draft proposed & placed before the Second Member 4 Draft discussed/approved by Second Member 5 Approved Draft comes to the Sr. PS/PS 6 Kept for pronouncement on 7 Date of uploading of Order 8 File sent to Bench Clerk 9 Date on which the file goes to the Head Clerk 10 Date on which file goes to the A.R. 11 Date of Dispatch of order