Taxability of enhanced compensation for agricultural land rejected where the land's agricultural character was undisputed.

Enhanced compensation received for agricultural land under proceedings under Section 18 of the Land Acquisition Act, 1881 was held not liable to tax because the land was admittedly agricultural and that factual position was not disputed. The court also noted that the technical objection that the contention had not been raised before the CIT (Appeals) was not shown to have been pressed before the Tribunal, and the record did not disclose any bar preventing the assessee from raising it at the first appellate stage. The appeal therefore failed.

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Issues: Whether enhanced compensation received in respect of agricultural land was liable to tax.

Analysis: The compensation was received pursuant to proceedings under Section 18 of the Land Acquisition Act, 1881. The land was admittedly agricultural land, and that factual position was not challenged. On that basis, the compensation could not be brought to tax. The separate technical objection that the contention had not been raised before the CIT (Appeals) was not shown to have been pressed before the Tribunal, and the record did not show any bar preventing the assessee from raising it before the first appellate authority.

Conclusion: The enhanced compensation was not taxable, and the appeal failed.

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