TaxTMI 
TaxTMI 
2022 (4) TMI 89
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.... Income Tax (Appeals) was not justified to sustain the order of Income Tax Officer, to assess the compensation as "Long Term Capital Gain" amounting to Rs. 5,31,194/-. The compensation received on account of compulsory acquisition of land on National Highway-64 covered under RFCTLARR Act is totally exempted as per circular issued by Central Board of Direct Taxes & as per provision of law under RFCTLARR Act. 3. That the Ld. Commissioner of Income Tax (Appeals) was not justified to sustain the finding of Income Tax Officer to assess additional compensation as interest u/s. 56 amounting to Rs. 1,20,654/-. 4. That the appellant craves leave to add or amend any ground of appeal before the appeal is heard or dispose off. From....
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....stake and also filed the revised computation of income wherein the Short Term Capital Gain to the tune of Rs. 2,09,108/- and Long Term Capital Gain of Rs. 1,54,29,120/- was claimed as exempt on the basis of CBDT Circular No. 36/2016 dt. 25/12/2016 wherein it had been specifically stated that all the compensation received on account of compulsory acquisition after 01/01/2014 would be exempt from income tax as per section 96 of the RFCTLARR Act. The assessee moved the application under section 154 of the Act through his counsel on 03/01/2018 and the A.O. passed the order rejecting the application under section 154 of the Act on 14/11/2018 i.e.; after 9 months 11 days. 10.1 In the present case it is not in dispute that the assessee re....
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....al gains arising to an Individual or a HUF from compulsory acquisition of an agricultural land situated in specified urban limit, subject to fulfillment of certain conditions. Therefore, compensation received from compulsory acquisition of an agricultural land is not taxable under the Act (subject to fulfillment of certain conditions for specified urban land). 2. The RFCTLARR Act which came into effect from 1st January, 2014, in section 96, inter alia provides that income-tax shall not be levied on any award or agreement made (except those made under section 46) under the RFCTLARR Act. Therefore, compensation received for compulsory acquisition of land under the RFCTLARR Act (except those made under section 46 of RFCTLARR Act), is ....
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....er the RFCTLARR Act, 2013. Now question arises as to whether the provisions of RFCTLARR Act, 2013 are applicable to the NH Act 1956 or not. In this regard the Hon'ble Rajasthan High Court in the case of Gopa Ram Vs. Union of India & Ors. (supra) referred by the Ld. CIT(A), observed as under: However, the Central Government vide Ordinance (No. 9 of 2014) dated 31.12.2014 has substituted Sub-section (3) of Section 105 of the Acquisition Act of 2013, which reads as under:- "(3) The provisions of this Act relating to the determination of compensation in accordance with the First Schedule, rehabilitation and resettlement in accordance with the Second Schedule and infrastructure amenities in accordance with the Third Schedul....
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....icability of the Acquisition Act of 2013 has been given effect in respect of the enactment specified in Fourth Schedule including the NH Act of 1956 with effect from 01.01.2015. It is therefore clear that the applicability of the Acquisition Act 2013 has been given effect to the NH Act 1956 w.e.f. 01/01/2015 and the assessee received the compensation on 05/11/2014 & 23/11/2015. In the present case also the land was compulsorily acquired by NHAI therefore the compensation received by the assessee was exempted under the Income Tax Act. Since the clarificatory Circular was issued by the CBDT on 25/10/2016 i.e.; after the date of filing the return by the assessee on 30/11/2015 that is why an application under section 154 of the Act was....
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.... also the CBDT vide Circular No. 36/2016 dt. 25/10/2016 clarified that the compensation received in respect of award or agreement which has been exempt from levy of Income Tax vide section 96 of the RFCTLARR Act shall also not be taxable under the provisions of Income Tax Act, 1961 even if there is no specific provisions of exemption for such compensation in the Income Tax Act, 1961. In the said Circular it is also clarified that no distinction had been made towards compensation received for compulsory acquisition of agricultural land and non agricultural land in the matter of providing exemption from Income Tax under the RFCTLARR Act. In the instant case the assessee received compensation for compulsory acquisition of commercial land durin....