COMMISSIONER OF INCOME TAX Vs. SMT. BURFI

JUDGEMENT

(1.) This appeal has been preferred by the Revenue under Section 260A of the Income-tax Act, 1961 (in short "the Act") against the order dated November 24, 2006 passed by the Income-tax Appellate Tribunal, Delhi Bench "I", New Delhi (hereinafter referred to as "the Tribunal") in I.T.A. No. 1415/Del/2005 for the assessment year 2002-03 proposing the following substantial question of law:

(2.) The facts necessary for adjudication as narrated in the appeal may be noticed. The Assessee received enhanced compensation at Rs. 1,12,828 and interest on the enhanced compensation amounting to Rs. 97,753 during the year in question. She filed return on October 8, 2002 declaring nil income and agricultural income at Rs. 25,000. On April 22, 2003, notice under Section 148 of the Act was issued and pursuant thereto, the Assessee filed return of income on November 14, 2003 declaring the same income as disclosed in the earlier return. The Assessing Officer under the provisions of Section 45(5)(b) of the Act held the enhanced compensation to be taxable. The interest on the enhanced compensation was also held to be taxable. Accordingly, the Assessing Officer completed the assessment at Rs. 2,10,581 plus agricultural income of Rs. 25,000. Feeling aggrieved, the Assessee filed an appeal before the Commissioner of Income-tax (Appeals) (in short "the CIT(A)") who vide order dated January 31, 2005 deleted the additions made by the Assessing Officer. On appeal by the Revenue, the Tribunal vide order dated November 24, 2006 while partly allowing the appeal of the Revenue held that the amount received on account of enhanced compensation was taxable in the year of receipt. Regarding interest received by the Assessee, the Tribunal upheld the order of the Commissioner of Income-tax (Appeals) in principle. Hence, the present appeal by the Revenue.

(3.) We have heard learned Counsel for the parties and perused the record.