https://www.taxtmi.com/caselaws?id=459717 ITAT Amritsar held that exemption u/s 10(37) for compensation received on compulsory acquisition of agricultural land cannot be denied merely because land is situated within municipal limits. The tribunal ruled that provisions of section 10(37) are designed to remove hardship for landholders whose originally agricultural lands would have continued agricultural use if retained. The AO's assessment u/s 143(3) imposing capital gains tax on compulsory acquisition was unsustainable. Since the agricultural land was compulsorily acquired in 1948 when under cultivation, the delayed compensation award and disbursement in 2014 did not alter the acquisition's character from compulsory to voluntary sale. Appeal decided in favor of assessee. en-us Tue, 28 Feb 2023 00:00:00 +0530 Tue, 24 Dec 2024 20:36:59 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=459717 ITAT Amritsar held that exemption u/s 10(37) for compensation received on compulsory acquisition of agricultural land cannot be denied merely because land is situated within municipal limits. The tribunal ruled that provisions of section 10(37) are designed to remove hardship for landholders whose originally agricultural lands would have continued agricultural use if retained. The AO's assessment u/s 143(3) imposing capital gains tax on compulsory acquisition was unsustainable. Since the agricultural land was compulsorily acquired in 1948 when under cultivation, the delayed compensation award and disbursement in 2014 did not alter the acquisition's character from compulsory to voluntary sale. Appeal decided in favor of assessee. Case-Laws Income Tax Tue, 28 Feb 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=459717