TaxTMI 
TaxTMI 
2023 (1) TMI 220
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....le in the case of the assessee without there being an' supporting evidence or claim made by the assessee during the appellate proceeding or in the assessment proceedings before the AO. (ii) On the facts and in the circumstances of the case, the Ld. CIT(A) erred in law by granting relief of Rs. 1,04,58,374/- on account of long term capital gain arising out of compensation against the land acquisition. The addition was based on the basis of information received from District Land Acquisition Officer which is a land enforcing agency / department and as such the case is covered under exceptions clause specified in Board's letter bearing F. No.279/Misc. 142/2007-ITJ (Pt) dated 20.08.2018. (iii) Any other grounds that may be urged at the time of hearing. Grounds raised by the assessee in the Cross Objection: 1. For that the instant appeal is completely bar by the Notification No. 17/2019 Dt.08th August 2019 issued by the Central Board of Direct Taxes as Tax effect is below of monetary limit of Rs.50.00 Lacs and on this ground alone instant appeal is liable for dismiss in limine. 2. For that the first ground of appeal taken by the Appellant is based on wrongly appreciati....
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....cted against the demand notice issued by Income Tax Officer Ward 4(4), Patna dated 27.12.2016 in which the following disputes arise for adjudication which are as under:- "whether compensation received on account of compulsory acquisition of land by the Government is taxable or not in the hands of appellant assessee." 2. That the appellant assessee is an agriculturist and filed his return of income on 26-06-2014 showing total income at @ Rs. 92,350 only. The source of Income was income from other source only. 3. That the appellant assessee has agricultural land which was ancestral and the only sources of income was cultivation of land. 4. That the Government of Bihar vide its notification no. 3043 dated 30-12-2013 has acquired the said land for construction of building for ITBP Department and paid compensation to the tune of Rs. 1,04,58,374/- only @ 3,25,000/- per decimal. 5. That Government of Bihar has paid the compensation amount under the category "Agricultural progressive land" whenever the commercial and residential rate are much higher than agricultural progressive land. Therefore, it is crystal clear that Government of Bihar has given rate for agricultural purposes....
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....see against compulsory acquisition of agricultural land by Department of Government of India which was claimed exemption. The Assessing Officer has stated that information was received from I & CI which the land acquisition officer has shown the land as a residential land and the assessee has been paid .a sum of Rs.10468374/- as compensation for land acquisition during the F.Y. 2013- 14. The A.O under misconception of fact has stated that as per the information given by the land acquisition -- officer the ' land is questioned is "Residential". On the facts and circumstances of the A.O has erred in computed the alleged LTCG under misconception of the provision. of relating to LTCG has determined the LTCG at Rs. 1,04,58,374/-. 7. On the other hand the ld. DR supported the order of the ld. AO and placed reliance on the documents enclosed in the paper book. 8. We have heard the rival contentions and perused the records placed before us. We notice that Office of Directorate of Land Acquisition, Department of Revenue & Land Reforms, Government of Bihar, Patna sanctioned a fund for acquisition of Dhanhar Progressive (Agricultural) land measuring about 3.98 acres @ Rs. 20 lakhs per....
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....pecified urban area is not regarded as a capital asset. Hence, capital gain arising from the transfer (including compulsory acquisition) of such agricultural land is not taxable. Finance (No.2 Act, 2004 inserted section 10(37) in the act from 01.04.2005 to provide specific' exemption to the capital gains arising to an individual or 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 no taxable under the Act (Subject to fulfillment of certain conditions for specified urban land. The RFCTLAAR 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 u/s 46) under RFCTLAAR Act'. Therefore, compensation received for compulsory acquisition of land under the RFCTLAARAct (except those made u/s 46 of RFCTLAAR Act) is exempted from the 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 ma....
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....cause the said Act i.e Right To Fair Compensation And Transparency in Land Acquisition, Rehabilitation and Settlement Act 2013 came into force w.e.f 1.1.2014 whereas alleged compensation was received by the appellant as mentioned in Form 16A showing deduction of tax at source on 24-10-2013 which clearly shows that alleged compensation was received prior to the effective date of RFCTLAAR Act and therefore, the relief granted by the ld.CIT(A) based on the application of section 96 of the RFCTLAAR Act has no merit and deserves to be set aside. Our view is further supported by the decision of the co-ordinate bench (ITAT Agra) in the case of Shri Krishna Kumar Sharma Vs. DCIT, ITA No. 173 of 2019 dt. 14-06- 2021 which has been relied on by the ld. Departmental Representative. 11. Now as far as first observation of ld. CIT(A) and contended by the Ld. Counsel for the assessee that the alleged compensation is an exempt income u/s. 10(37) of the Act, we will first go though the relevant provisions of Section 10(37) of the Act, which reads as under:- 10(37) in the case of an assessee, being an individual or a Hindu undivided family, any income chargeable under the head "Capital gains" ari....