A method of canceling interference by a signal receiving apparatus in a communication system supporting a multi-user Multiple-Input Multiple-Output (MIMO) scheme and a signal receiving apparatus is provided. The method includes determining whether there is a need for using an interference cancellation scheme while performing a signal detecting operation; and performing the signal detecting operation using the interference cancellation scheme, or performing the signal detecting operation without using the interference cancellation scheme based on determining whether there is the need for using the interference cancellation scheme.