Ajay Gupta, Gurgaon V. ITO, Gurgaon

ITA 5937/DEL/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 2948 (ITAT-DELHI)
• Duration Of Justice: 6 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-06-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 29-05-2017
• Assessment Year: 2013-2014
• Appeal Filed On: 21-11-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 56(2); 56; 28

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : SMC : NEW DELHI BEFORE SHRI R.S. SYAL, VICE PRESIDENT ITA NO.5937/DEL/2016 ASSESSMENT YEAR : 2013-14 AJAY GUPTA, S/O SHRI PRAN SUKH GUPTA, H.NO.852, SECTOR-38, GURGAON. PAN: ABFPG9258C VS. ITO, WARD 1(1), GURGAON. (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI VISHAL CHANDRA GUPTA, CA DEPTT. BY : SHRI AMRIT LAL, SR.DR DATE OF HEARING : 06.06.2017 DATE OF PRONOUNCEMENT: 07.06.2017 ORDER THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER PASSED BY THE CIT(A) ON 15.09.2016 IN RELATION TO ASSESSMENT YEAR 2013-14. 2. THE ONLY ISSUE RAISED IN THIS APPEAL IS AGAIN ST THE TREATING THE NET INTEREST OF RS.23,46,181/-, BEING THE AMOUNT OF INT EREST U/S 28 OF THE LAND ITA NO.5937/DEL/2016 2 ACQUISITION ACT, 1894, AS CHARGEABLE TO TAX U/S 56 OF THE INCOME-TAX ACT, 1961 (HEREINAFTER ALSO CALLED THE ACT) 3. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT T HE ASSESSEE RECEIVED INTEREST U/S 28 OF THE LAND ACQUISITION ACT WHICH W AS CLAIMED AS EXEMPT. INVOKING THE PROVISIONS OF SECTION 56(2)(VII), THE ASSESSING OFFICER, AFTER ALLOWING DEDUCTION @ 50% OF RECEIPT TOWARDS EXPENSE S, ADDED RS.23,46,181/- TO THE TOTAL INCOME. THE LD. CIT(A) APPROVED THE DECISION OF THE ASSESSING OFFICER. THE ASSESSEE IS AGGRIEVED AGAINST SUCH SUSTENANCE OF ADDITION. 4. HAVING HEARD BOTH THE SIDES AND PERUSED THE RELE VANT MATERIAL ON RECORD, IT IS SEEN THAT THE AMOUNT OF INTEREST RECE IVED BY THE ASSESSEE IS CHARGEABLE TO TAX IN THE YEAR OF RECEIPT IN VIEW OF INSERTION OF CLAUSE (VIII) TO SECTION 56(2) BY THE FINANCE NO. (2) ACT 2009 W. E.F 01.04.2010. THIS PROVISION READ WITH SECTION 145A(B) MAKES IT CLEAR THAT INTEREST RECEIVED BY ASSESSEE ON COMPENSATION OR AN ENHANCED COMPENSATIO N SHALL BE DEEMED TO THE INCOME OF THE YEAR IN WHICH IT IS RECEIVED. THE LEARNED CIT(A) HAS RIGHTLY SET OUT AND RELIED ON THE OF HONBLE PUNJAB AND HARYANA HIGH COURT JUDGMENT IN THE CASE OF MANJEET SINGH (HUF) VS. UOI (CWP NO. 15506 OF ITA NO.5937/DEL/2016 3 2013) DATED 14.1.2014, BEING THE JURISDICTIONAL HI GH COURT. IN VIEW OF FOREGOING DISCUSSION, I AM OF THE CONSIDERED OPINIO N THAT THE LD. CIT(A) WAS RIGHT IN TREATING THE AMOUNT AS CHARGEABLE TO T AX. 5. IN THE RESULT, THE APPEAL FILED BY THE ASS ESSEE IS DISMISSED. THE DECISION WAS PRONOUNCED IN THE OPEN COURT ON 0 7 TH JUNE, 2017. SD/- (R.S. SYAL) VICE PRESIDENT DATED:07 TH JUNE, 2017. DK COPY FORWARDED TO 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR DY. REGISTRAR, ITAT, NEW DELHI