TaxTMI 
TaxTMI 
2025 (12) TMI 805
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.... 2. For that the Ld. CIT(A) has erred in confirming the addition of compensation of Rs. 4,71,91,650 in the hands of the appellant u/s 50C of the Income Tax Act, 1961 under the head capital gains. 3. For that section 50C is not a charging section. It simply says what would be the full consideration for the purpose of section 48 of the Income Tax Act, 1961 to compute the income chargeable under head capital gains. 4. For that section 48 is the charging section and section 50C is just procedural in nature as to what would be the full value of consideration for the purpose of section 48 of the Act and therefore, the Ld. CIT(A) is wrong in justifying the addition made under section 50C of the I.T. Act, 1961. 5. Fo....
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....from Income tax as clarified by the CBDT vide its circular no.36 of 2016 which says that compulsory acquisition of land under the RFCTLARR Act, 2013 is exempt from Income tax under section 96 of the RFCTLARR Act and therefore, the Ld. CIT(A) has erred in confirming the addition made under section 50C of the I.T. Act, 1961. 9. For that from the perspective of computing capital gain according to general provisions of the Act, the capital gains shall be computed as per section 48 by deducting from the full value of consideration received or accruing as a result of the transfer of the capital asset, the expenditure incurred in connection with such transfer and the cost of acquisition of the asset and the cost of any improvement thereto....
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....mpt under Section 10(37) of the Act. However, no evidences were produced before the learned Assessing Officer. Finally, the learned Assessing Officer added the same on the ground that no documentary evidences were filed to substantiate the claim under Section 37 of the Act and made the addition of Rs.4,71,91,650/- to the income of the assessee in the assessment framed. 2.2. In the appellate proceedings, the learned CIT (A) dismissed the appeal of the assessee. The learned CIT (A) did not adjudicate the issue by admitting the documents filed by the assessee as additional evidences under Rule 46A of the Income Tax Rules, 1962 and thus dismissed the appeal of the assessee. 2.3. After hearing the rival contentions and perusing the materia....
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.... non-agricultural. The provisions of section 96 of the said Act is wider in scope and does not make any distinction between compensation received for compulsory acquisition for agricultural land and non-agricultural land in the matter of providing exemption from income tax. That a copy of the Gazette notification issued by the Ministry of Road Transport & Highways notifying, the list of lands, including the land of the appellant, to be compulsorily acquired under the National Highways Act, 1956 is avaible in the paper book. Therefore, when the land has been clearly acquired under the NH Act, 1956, the provisions of RFCTLARR Act, 2013 will be applicable, as explained in the foregoing points, and as such exemption from income tax must be exte....
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.... 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 exempted from the levy of income-tax. 3. 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 acquisition of land, especially those relating to acquisiti....