The AO disallowed the claim of deduction @ 50% under section 57(iv) of the Act\u00a0 in respect of interest recived on enhanced compensation on the ground that as the assessee is in the business of real estate the interest income arising from compulsory acquisition of property is taxable under the head\u00a0 profit and gains of business and profession (PGBP)\u00a0 and not income from other sources. CIT (A) up held the disallowance .On appeal the Tribunal held that in view of overriding nature of provisions of Section 56(2)(viii), assessee\u2019s nature of business was of no relevance, and, consequently, assessee was entitled to statutory deduction under Section 57(iv) in respect of interest received on enhanced compensation for compulsory acquisition of property.\u00a0 Assessable as income from other sources\u00a0 and not as business income .(AY. 2015-16)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 57 : Income from other sources-Deductions-Compulsory acquisition of property-Interest on enhanced compensation -Assessable as income from other sources and not as business income \u2013 Real estate business is not relevant – Entitled to deduction of 50 Per Cent. .[S. 28(i), 56(2)(viii), 57(iv), 145B(1)] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-41856","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-aT6","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/41856","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=41856"}],"version-history":[{"count":3,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/41856\/revisions"}],"predecessor-version":[{"id":44165,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/41856\/revisions\/44165"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=41856"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=41856"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=41856"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}