Amardeep Chaudhary Vs ITO (ITAT Chandigarh)
The appeal before Income Tax Appellate Tribunal, Chandigarh challenged the order dated 29.11.2024 passed by the Addl./JCIT(A)-2, Delhi. The assessee raised multiple grounds, primarily contesting the tax treatment of ₹1,66,05,363 received as enhanced compensation along with interest under the Land Acquisition Act, which had been assessed as “income from other sources.” The assessee also challenged the validity of the intimation issued under section 143(1) by the CPC, Bengaluru, and, in the alternative, sought a 50% deduction under section 57 of the Income-tax Act.
There was a delay of 113 days in filing the appeal, for which the assessee sought condonation through an affidavit. After considering the reasons and noting the absence of objection from the Department, the Tribunal condoned the delay and proceeded to decide the appeal on merits.
On the substantive issue relating to taxation of enhanced compensation and interest, the assessee relied on judicial precedents to claim exemption. However, the CIT(A) had upheld the addition by applying section 56(2)(viii), inserted with effect from 1.4.2010. The Tribunal noted that this issue was already examined in detail by a Coordinate Bench in a group of cases decided on 11.11.2025, wherein it was held that after insertion of section 56(2)(viii), enhanced compensation and interest in land acquisition cases are taxable. Following this binding precedent, the Tribunal dismissed the assessee’s challenge to the addition.
