Case Law Details
DCIT Vs Ganga Developers (ITAT Mumbai)
ITAT Mumbai held that compensation received in respect of award/ agreement under Section 96 of Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 is not taxable under Income Tax Act, 1961.
Facts-
During assessment proceedings, it was found that assessee has claimed exemption under Section 10(37) of the Income Tax Act of Rs. 69,92,42,974/-. On questioning to the same, assessee submitted copy of Awarded under Section 11 of the Land Acquisition Act, 1984. Assessee relied on Section 96 of Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 as well as CBDT circular no.36/2016 dated 25th October 2016. Assessee submits that as the compensation has been received under that Act, the amount received is exempt under Section 10(37) of the Income Tax Act.
AO held that compensation received by the assessee of Rs. 69,96,28,629/- is business income. Accordingly, assessment order u/s. 143(3) of the Act was passed determining the total income of the assessee at ₹67,93,22,036/-.
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