2023 (1) TMI 625

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.... Officer in not allowing benefit of exemption claimed u/s 10(37) of the Income-tax Act, 1961 [hereinafter referred to as 'The Act'] on the compulsory acquisition of agricultural land of the assessee under the Land Acquisition Act. 3. In the alternative, the assessee is aggrieved by the cost of acquisition of land taken at Rs. 400/- per sq. yard instead of Rs. 2,240/- per sq yard as on 01.04.1981, without affording adequate opportunity of hearing. 4. Briefly stated, the facts of the case are that during the course of scrutiny assessment proceedings, the Assessing Officer found that the assessee was in possession of a piece of land measuring 325 sq. yards in in Khasra No. 52/2 (G-09) at village Jasola which was acquired by Land Acqu....

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.... the year 1974. It was strongly contended that the land still continued to be used as agricultural land prior to the notification. Therefore, the same being agricultural land, is eligible for exemption u/s 10(37) of the Act. 8. The Assessing Officer was not convinced with the reply of the assessee and treated the total consideration received against compulsory acquisition as income of the assessee and took sale consideration at Rs. 79,09,601/- and made addition accordingly. 9. The assessee carried the matter before the ld. CIT(A) but without any success. 10. Before us, the ld. counsel for the assessee vehemently argued that the Assessing Officer and the ld. CIT(A) have wrongly interpreted the provisions of section 2(14) (iii) of the Act ....

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....sfer, was being used for agricultural purposes by such Hindu undivided family or individual or a parent of his; (iii) such transfer is by way of compulsory acquisition under any Jaw, or a transfer the consideration for which is determined or approved by the Central Government or the Reserve Bank of India; (iv) such income has arisen from the compensation or consideration for such transfer received by such assessee on or after the 1st day of April, 2004. Explanation.-For the purposes of this clause, the expression ''compensation or consideration" includes the compensation or consideration enhanced or further enhanced by any court, Tribunal or other authority" Section 2(14) (iii)(a) of the Act "Agricultural land in India, no....