ITAT Delhi upholds CIT(A) decision granting exemption under sec 10(37) for land acquisition compensation.

The ITAT Delhi upheld the CIT(A)'s decision, ruling in favor of the assessee. The exemption claimed under section 10(37) was allowed for compensation received for land acquisition by the Haryana urban development authority. Additionally, the treatment of Gair Mumkin land as agricultural land was confirmed, as supported by evidence of its agricultural nature. The revenue's appeal was dismissed, affirming the exemption and the classification of the land as agricultural.

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Issues:
1. Exemption claimed by the assessee u/s 10(37) and deletion of addition under long term capital gain.
2. Treatment of Gair Mumkin land as agricultural land.

Analysis:
1. The appeal was filed by the revenue against the order of the ld CIT(A) for the Assessment Year 2010-11. The primary issue raised by the revenue was the allowance of exemption claimed by the assessee u/s 10(37) and deletion of the addition made under long term capital gain. The assessee, an individual, had received compensation for the acquisition of land by the Haryana urban development authority. The assessing officer denied the deduction under section 10(37) citing the amendment made w.e.f. 01/04/2004, while the CIT(A) allowed the claim, stating that the exemption is not limited to acquisitions post that date. The ITAT Delhi, citing a previous decision, upheld the CIT(A)'s decision, ruling in favor of the assessee and confirming the exemption granted under section 10(37) for the compensation received.

2. The second ground of appeal involved the treatment of Gair Mumkin land as agricultural land. The revenue contended that the CIT(A) erred in granting exemption without appreciating the facts of the case. However, the ITAT Delhi noted that the Gair Mumkin land was certified by revenue authorities as agricultural land, supported by evidence of Wells, water channels, and water storage tanks, indicating its agricultural nature. As the revenue authorities had confirmed the land's agricultural status, the ITAT upheld the CIT(A)'s decision, dismissing the revenue's appeal on this ground as well.

In conclusion, the ITAT Delhi dismissed the revenue's appeal, confirming the exemption granted to the assessee under section 10(37) and upholding the treatment of Gair Mumkin land as agricultural land.

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