{"id":18440,"date":"2021-05-19T13:00:42","date_gmt":"2021-05-19T07:30:42","guid":{"rendered":"https:\/\/itatonline.org\/digest\/?post_type=qa&#038;p=18440"},"modified":"2021-05-23T12:04:34","modified_gmt":"2021-05-23T06:34:34","slug":"taxability-of-interest-on-compensation-received-under-land-acquisition-act","status":"publish","type":"qa","link":"https:\/\/itatonline.org\/digest\/qa\/taxability-of-interest-on-compensation-received-under-land-acquisition-act\/","title":{"rendered":"Whether  interest on compensation received under land acquisition Act is taxable ?"},"content":{"rendered":"<p>AfterGhanshyam (HUF>[2009] 315 ITR 1 (SC), <\/u>it was settled thatinterest received on compensation or enhanced compensation under section 28 of Land Acquisition Act, 1894 is not taxable being part of enhanced compensation itself Courts \/tribunals have decided in favour of assessee on the basis Ghanshyam(HUF) consistently. However, P &amp; H High Court in Mahender Pal Narang v. CBDT [2020] 120 taxmann.com 400 (Punjab &amp; Haryana) decided against the assessee by relying on sections 56(2)  and 57  of the 1961 Act.<\/p>\n<p>P &#038; H High court while deciding against the assessee, dissented with Gujarat High Court  Movaliya Bhikhubhai Balabhai v. ITO(TDS) [2016] 70 taxmann.com 45\/388 ITR 343 (Guj.)<\/p>\n<p>Further, Hon\u2019ble Supreme Court in <strong><em>Mahender Pal Narang v. CBDT [2021] 126 taxmann.com 105 (SC) dismissed the SLP by way of non speaking order against the above P &amp; H High Court ruling. What is the correct legal position in this regard?<\/p>\n","protected":false},"comment_status":"open","ping_status":"closed","template":"","qa_expert":[139],"qa_category":[23],"qa_tag":[127],"class_list":["post-18440","qa","type-qa","status-publish","hentry","qa_expert-research-team","qa_category-income-tax","qa_tag-taxability-of-interest-on-compensation"],"acf":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa\/18440","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/qa"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=18440"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=18440"}],"wp:term":[{"taxonomy":"qa_expert","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa_expert?post=18440"},{"taxonomy":"qa_category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa_category?post=18440"},{"taxonomy":"qa_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa_tag?post=18440"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}