Law:

Section:

Section 2(13), read with section 28(i), of the Income-tax Act, 1961 - Adventure in nature of trade - Assessee purchased certain agricultural lands during period 1992 to 1998 - Said lands were acquired immediately thereafter by State Government - Assessee received compensation/enhanced compensation towards acquisition of said lands during assessment years 2000-01 to 2002-03 - In course of assessment, Assessing Officer found that assessee were indulging in land transactions which were demarcated to be acquired by Government - He also came to conclusion that material placed on record clearly indicated that assessee did not have any intention to hold lands and to cultivate it - Accordingly, Assessing Officer held that surplus received by assessees, in respect of lands purchased by assessees and acquired by State, was liable to be taxed as a business income terming said transaction as 'adventure in nature of trade', as defined under provisions of section 2(13) - Commissioner (Appeals) as well as Tribunal upheld order of Assessing Officer - Whether in view of fact that aforesaid finding recorded by authorities below was based on relevant material, attending circumstances and correct legal position, it did not require any interference - Held, yes - Whether since compensations/enhanced compensation received on account of acquisition of land was a business income, interest which was a component of compensation was also chargeable to income-tax under head 'Profit and gains of business or profession' - Held, yes Section 5 of the Income-tax Act, 1961 - Income - Accrual of - Whether interest which forms part of compensation paid on account of acquisition of land, has to be taxed in year of receipt - Held, yes Section 234B of the Income-tax Act, 1961 - Interest, chargeable as - Whether difficulty faced by assessee in matter of computation cannot defeat liability for payment of advance tax - Held, yes - Whether, therefore, where assessee failed to pay proper amount of advance tax on account of difficulty in computation, it was liable to pay interest under section 234B - Held, yes FACTS The assessees, namely, 'G', 'S' and 'K' were real brothers. The said assessees and one 'N',…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492