Real estate business - Interest on enhanced compensation arising out of compulsory acquisition - Whether taxable as income from other sources with mandatory deduction @ 50%

Facts:

Assessee a real estate entity had received interest on compulsory acquisition on enhanced compensation which was offered under section 56(2)(viii) in toto and deduction @ 50% was claimed on the same under section 57(iv). AO held that since the assessee was in the real estate business the interest on enhanced compensation was taxable as profits and gains of business or profession and not as income from other sources as claimed by the assessee. CIT(A) upheld views of the assessee. On higher appeal by the assessee -

Held in favour of the assessee that the special section in income from other sources explicitly exists to tax interest on compulsory acquisition and accordingly the deduction of 50% is also allowable.

Case: Philia Estates Developers (P) Ltd. v. Asstt. CIT 2023 TaxPub(DT) 2470 (Del-Trib)