Swaranjit Kaur, Mohali V. ITO, W-6(3), Mohali

ITA 425/CHANDI/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 6399 (ITAT-CHANDIGARH)
• Duration Of Justice: 9 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-01-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2007-2008
• Appeal Filed On: 05-04-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: N D GUPTA
• Assessee Lawyers: A K JINDAL
• Section: 28

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. 425/CHD/2018 / ASSESSMENT YEAR : 2007-08 SWARANJIT KAUR, VILALGE BALONGI, MOHALI THE ITO, WARD-6(3), MOHALI ./PAN NO: CXKPK76786P / APPELLANT /RESPONDENT ! /ASSESSEE BY : SHRI A.K.JINDAL, CA ' ! / REVENUE BY : SHRI N.D.GUPTA, SR.DR # $ % /DATE OF HEARING : 16.12.2018 &'() % / DATE OF PRONOUNCEMENT : 16.12 2018 (*/ ORDER PER SANJAY GARG, JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE ASSESS EE AGAINST THE ORDER DATED 16.01.2018 OF THE COMMISSIONER OF INCOM E TAX (APPEALS )- 2 , CHANDIGARH [HEREINAFTER REFERRED TO AS CIT(A)]. 2. THE SOLE ISSUE RAISED IN THIS APPEAL IS REGARDIN G TAXABILITY OF INTEREST ON ENHANCED COMPENSATION RECEIVED BY THE ASSESSEE. ADMITTEDLY, THE INTEREST ON ENHANCED COMPENSATION COVERED U/S 28 OF THE LAND ACQUISITION ACT IS TO BE TREATED AS PART OF THE COMPENSATION IN THE LIGHT OF THE DECISION IN HON'BLE SUPREME COURT IN CIT VS. GHANSHYAM (H UF) (2009) 115 ITR 1(SC). THIS MATTER HAS ALSO BEEN DEALT WITH AND DECIDED IN THE LATEST DECISION OF THE COORDINATE BENCH OF THE TRIB UNAL VIDE ORDER DATED 13.12.018 IN VARINDER SINGH VS ACIT, ITA NO. 399 /CHD/2012 FOR ITA NO. 425/CHD/2018- SWARANJIT KAUR, MOHALI 2 ASSESSMENT YEAR 2011-12, WHEREIN , IT WAS HELD BY THE TRIBUNAL THAT THE INTEREST RECEIVED ON ENHANCED COMPENSATION IS TO BE TREATED AS PART OF THE COMPENSATION AND, AS SUCH, WAS NOT EXIGIBLE TO TAXA TION. THE RELEVANT PART OF THE FINDING OF THE TRIBUNAL (PARA 6) ARE REPRODU CED HEREIN UNDER:- 6. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS OF THE LD. REPRESENTATIVES OF THE ASSESSEE. SO FAR AS THE ISSU E AS TO THE TAXABILITY OF INTEREST RECEIVED ON ENHANCED COMPENSATION U/S 28 OF THE LAND ACQUISITION ACT IS CORNERED, THE SAME IS SQUARELY COVERED BY THE DECIS ION OF THIS TRIBUNAL IN THE GROUP OF CASES WITH LEAD CASE IN SHRI SATBIR VS. ITO & OTHERS IN ITA NOS. 1413 T O 1415/CHD/2016 VIDE ORDER DATED 9.7.2018, ANOTHER GROUP OF CASES WITH LEAD CASE IN ITO VS. SH. NACHH ATTAR SINGH & OTHERS IN M.A. NOS. 61/CHD/2014 (IN ITA N OS. 564/CHD/2010) ORDER DATED 7.2.2018 AND ALSO IN THE CASE OF SOM NATH, YAMUNANAGAR VS. ITO IN ITA NO. 552/CHD/2016 ORDER DATED 11.7.2018, WHEREIN, THE TRIBUNAL AFTER CONSIDERING THE DECISION OF THE HON 'BLE SUPREME COURT IN THE CASE OF CIT VS. GHANSHYAM (HUF)(SUPRA) , AND THE DECISION OF THE HON'BLE PUN JAB & HARYANA HIGH COURT IN THE CASE OF MANJEET SINGH (HUF) KARTA MANJEET SINGH VS. UOI IN CWP NO. 15506 OF 2013 DATED 14.01.2014 AND FURTHER DECISION OF TH E HON'BLE SUPREME COURT IN UOI VS. HARI SINGH AND OTHERS IN CIVIL APPEAL NO. 1504 OF 2017 DATED 15.9. 2017 AND ANOTHER DECISION OF THE HON'BLE SUPREME COURT IN CIT VS. CHET RAM (HUF) DATED 12.9.2017 IN CIVIL APPEAL NO. 13053/2017 HAS HELD THAT THAT THE INTERE ST RECEIVED BY AN ASSESSEE ON COMPULSORY ACQUISITION O F AGRICULTURAL LAND U/S 28 OF THE LAND ACQUISITION AC T, IS TO BE TREATED AS PART OF THE COMPENSATION AND FURTHER THAT THE COMPENSATION BEING EXEMPT U/S 10(37) OF THE AC T IS NOT EXIGIBLE TO THE TAX. ITA NO. 425/CHD/2018- SWARANJIT KAUR, MOHALI 3 3. HOWEVER, AT THIS STAGE, THE LD. DR HAS RAISED A POINTED THAT IT IS NOT CLEAR THAT THE ENTIRE INTEREST WAS RECEIVED BY THE ASSESSEE UNDER THE PROVISIONS OF SECTION 28 OF THE LAND ACQUISITION AC T OR PART OF THE SAME IS ALSO RECEIVED UNDER THE PROVISIONS OF SECTION 34 OF THE LAND ACQUISITION ACT. 4. WE, THEREFORE, RESTORE THIS LIMITED ASPECT FOR E XAMINATION AS TO THE NATURE OF INTEREST RECEIVED BY THE ASSESSEE TO THE FILE OF THE ASSESSING OFFICER. IF THE SAME IS RECEIVED AS PER THE PROVISI ONS OF SECTION 28 OF THE ACT, THEN, IN THE LIGHT OF THE DECISION OF THE TRI BUNAL REFERRED TO ABOVE, THE SAME WILL NOT BE LIABLE FOR TAXATION, HOWEVER, IF THE SAME IS FOUND TO BE RECEIVED AS PER THE PROVISIONS OF 34 OF THE AC T, THE ASSESSING OFFICER WILL DECIDE THE TAXABILITY AFTER HEARING THE LD. CO UNSEL FOR THE ASSESSEE ON THIS ISSUE. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS TREATE D AS PARTLY ALLOWED. ORDER DICTATED AND PRONOUNCED IN THE OPEN COURT IMM EDIATELY ON COMPLETION OF HEARING ON 16.12.2018. SD/- SD/- ( $ % & '# / ANNAPURNA GUPTA) () / ACCOUNTANT MEMBER ( / SANJAY GARG) / JUDICIAL MEMBER DATED : 16.12.2018 .. '+ ,- .- / 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 ITA NO. 425/CHD/2018- SWARANJIT KAUR, MOHALI 4 '+ # / BY ORDER, 8 ' / ASSISTANT REGISTRAR