Case Law Details
Satbir & Ors. Vs ITO (ITAT Chandigarh)
Capital gains–Interest on enhanced compensation arising on compulsory acquisition of agricultural land–Taxability
Interest earned under section 28 of Land Acquisition Act, 1894, which is on enhanced compensation, is treated as an accretion to the value and therefore, is part of the enhanced compensation or consideration. Therefore, interest on enhanced compensation under section 28 of Land Acquisition Act, 1894, being an integral part of consideration was exempt from capital gains tax under section 10(37).
FULL TEXT OF THE ITAT JUDGMENT
This bunch of appeals have been preferred by different assessees for different assessment years. Whereas the respective appeals of S/Shri Satbir and Ved Pal for three years each are directed against the separate orders of CIT (Appeals), Jind dated 02.11.2016, the respective appeals of Shri Sheo Chand, Shri Karambir, Shri Krishan Kumar, HUF and Shri Ravi Dutt for three years each are directed against the orders of the ld. CIT (Appeals) Hissar dated 02.11.2016. The respective appeals of Shri Dharam Pal and Shri Chandgi Ram for the three years are directed against the separate orders of CIT (Appeals) Faridabad dated 28.07.2016 and respective appeals of Shri Amarjeet for the three years are directed against the order of the CIT (Appeals) Faridabad of July,2016. All the appeals in the case of each of the assessees pertain to assessment years 2007-08 to 2009-10.
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