TaxTMI 
TaxTMI 
2022 (9) TMI 337
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....l: i. The Order of the CIT (A] dt. 6.06.2018 is perverse and bad in law & facts in as much as he did not consider the basic fact of the Addition made under the Head, Long Term Capital Gain for Rs. 3,63,50,267/ as the Assessee failed discharge, the onus of evidence substantiating his claim of Exemption from Capital Gain on account of Agriculture Land, during the Assessment Proceedings. ii. The Order of the CIT [A] is further perverse and bad in law & facts in as much as he has erred in admitting additional evidence in violation of Rule 46A. iii. The Order of the CIT [A] is further perverse and bad in law & frets in as much as he failed to understand that TDS was deducted v/s 194LA treating it to be other than Agric....
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.... the assessee receipt of compensation for Rs. 3,68,19,767/- against acquisition of his land by the District Land Acquisition Officer, Patna and it was found that the assessee was liable to pay tax on capital gain on compensation amount. Accordingly, the case was opened u/s 148 of the Income-tax Act and notice was issued upon the assessee and in response to such notice, the assessee filed its return of income for A.Y. in question. While doing so, the assessee showing his works contract business income for Rs. 1,20,960/- and agricultural income for Rs. 3,55,500/-. Further, the assessee has shown exempted income for Rs. 3,55,500/- under the head, agricultural income and Rs. 3,68,19,767/- under the head, compensation receipt amount totaling to ....
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....al evidence in violation of Rule 46A of the Income-tax Act and as such it required to be quashed. 8. On the other hand, ld. AR supported the order passed by the ld. CIT(A) and submitted that the order passed by the ld. CIT(A) was a reasoned order need not required any further inference by the Hon'ble Tribunal. He further submitted that the ld. CIT(A) deleted the addition with the following observation: "The appellant has submitted all the required documents regarding acquisition of land as asked by AO during the assessment proceeding such as Gazette Notification in relation to acquisition of his land, sale receipt of agricultural product, letter of NHAI etc. which evidentially confirms the said compulsorily acquired land under t....
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....apital gains arising to an Individual or a HUF from compulsory acquisition of an agricultural land situated in specified urban limit, subject to fulfilment of certain conditions. Therefore, compensation received from compulsory acquisition of an agricultural land is not taxable under the Act (subject to fulfilment of certain conditions for specified urban land). 2. The RFCTLARR Act which came into effect from Is1 January, 2014, in section 96, inter alia provides that income-tax shdll 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), i....
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....ent made (except those made under section 46 under the RFCTLARR Act). Therefore, compensation received for compulsory acquisition of land under the RFTLARR Act (except those made under section 46 under the RFCTLARR Act), is exempted from levy of income tax. As no distinction has been made between 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, the exemption provided under section 96 of the RFCTLARR Act is wider in scope than the tax exemption provided under the existing provisions of Income-tax Act, 1961. This has created uncertainty in the matter of taxability of compensation received on compulsory acquisiti....