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

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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.

Replies (5)
56(2)(viii)
(viii) income by way of interest received on compensation or on enhanced compensation referred to in [sub-section (1) of section 145B];

Interest received is taxable . You will be required to pay tax alongwith interest on delayed payment of tax.
Both enhanced compensation and interest on enhanced compensation is chargeable to tax

Sir Actually It was agricultural land in rural area and as acc. to Judgement Govindbhai Mamaiya (Apex Court) CIVIL APPEAL NO(S). 8103/2009. It may fall under Sec 45(5) but if it was capital gain for agricultural land it must get exempted. I don't know exactly whether it is sec 10(37) or not.

Please clear sir is it the right way I am thinking.

Sir I believe it has some other way also for rural agricultural land.

OK then the enhanced compensation would exempted however interest on enhanced compensation is taxable 

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