Compensation on Compulsory Acquisition of Land Held as Stock-in-Trade Exempt from Tax

Balaji Developers Vs ITO (ITAT Pune) The Income Tax Appellate Tribunal (ITAT) Pune, in the case of Balaji Developers v. ITO, delivered a decision on a matter concerning the taxability of compensation received from compulsory land acquisition. The case centered on whether a partnership firm could claim an income tax exemption on compensation received for land held as stock-in-trade that was compulsorily acquired by the National Highways Authority of India (NHAI). Case Background and Initial Rulings Balaji Developers, a partnership firm engaged in land development, filed its income tax return fo...