Interest received on Enhanced Compensation under Sec 28 of Land Acquisition Act

Jatin Gupta (35 Points)

07 November 2019  

I have filed return ITR1 in which I shown my income of Interest from Enhanced compensation as Exempt.

Our land has been acquired by HSIIDC in year 2005 at that time they gave us compensation. After few other appeals, Court gave all of us enhanced compensation under sec 23(1) and 23(2) apart from this we also receive interest income on this under sec 28 "Interest on enhanced compensation". I have read this on forum that is exempt income and filed ITR 1 accordingly and also get TDS refund which has been deducted on income under sec 28.

Now I got notice that I must pay tax on 50% of the amount received under sec 28. I got that payment in the month of January 2016.

I read the judgement of HSIIDC vs Savitri and another, Punjab and Haryana High Court C.R. No. 2509 of 2012

CIT, Faridabad vs Ghanshyam (Supreme Court)

Please suggest me what Should I do???

and also my neighbor got notice for the same but he got that payment in September 2017 and they are saying for sec56(viii) r.w.s 145B w.e.f. 01-04-2017.

I will really grateful Please reply me.

Thanks in Advance.