Interest on enhanced compensation being part of consideration is exempt u/s. 10(37)

DCIT Vs Ashok Sharma (ITAT Jaipur)

ITAT Jaipur held that interest received on enhanced compensation is nothing but compensation and hence for the interest received was eligible for exemption u/s. 10(37) of the Income Tax Act. Accordingly, appeal of department dismissed.

Facts- AO noted that the assessee has shown the exempt income of Rs. 8,86,73,959/- as interest on compensation fully exempt. It includes interest and claims exemption u/s. 10(37) of the Act. Record reveals that the assessee has received enhanced compensation of Rs. 5,60,56,954/- and interest

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