No Tax on Compensation for Compulsory Acquisition of Agricultural Land

Sumesh Kumar Vs ITO (ITAT Delhi) The issue under consideration in this case is that a receipt cannot be taxed as income unless it is in the nature of a revenue receipt or is specifically brought within ambit of income by way of specific provisions of the Income Tax Act. In view of the facts, the interest received on compensation to the assessee is nothing but a capital receipt. In view of above the reopening of the assessment u/s 147 is against law. Hence, the assessment proceedings initiating ultra vires and be quashed. ITAT have heard both the parties and perused the material available on re...