Section 28 Interest Is Compensation, Not Income: Reassessment Set Aside

Suresh Kumar Vs ITO (ITAT Chandigarh) ITAT Chandigarh Quashes Reopening on Land Acquisition Compensation: Interest u/s 28 Treated as Part of Compensation, Not Taxable as Income from Other Sources The Chandigarh Bench of the ITAT allowed the assessee’s appeal for AY 2015-16 and quashed the reassessment initiated under section 147, holding that the Assessing Officer had no valid “reason to believe” that income had escaped assessment. The reopening was based on the receipt of enhanced compensation and interest under section 28 of the Land Acquisition Act, 1894, which the AO sought to tax as...