Deduction u/s 80P(2)(a)(i) and 80P(2)(d) on bank interest remanded for AO's verification, including classification of compulsory investments and relat...
ITAT allowed the assessee's appeal, holding that interest received on enhanced compensation for compulsory acquisition of agricultural land, awarded under s.28 of the Land Acquisition Act, is in the nature of compensation and forms part of the full value of consideration for such compulsory acquisition. Consequently, the amount is eligible for exemption under s.10(37) of the Income-tax Act. The Tribunal held that provisions of s.56(2)(viii) read with s.145B are inapplicable in such circumstances and directed deletion of the addition made by the AO.
ITAT allowed the assessee's appeal, holding that interest received on enhanced compensation for compulsory acquisition of agricultural land, awarded under s.28 of the Land Acquisition Act, is in the nature of compensation and forms part of the full value of consideration for such compulsory acquisition. Consequently, the amount is eligible for exemption under s.10(37) of the Income-tax Act. The Tribunal held that provisions of s.56(2)(viii) read with s.145B are inapplicable in such circumstances and directed deletion of the addition made by the AO.
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