Exemption U/s. 10(37) valid on Compulsory acquisition of agricultural land though Sale price fixed on negotiated settlement

ITO Vs Girijakumari M  (ITAT Cochin) The assessee’s 70 cents of land at Vizhinjam Village was notified for compulsory acquisition by Government of Kerala for developing Vizhinjam International Seaport. Though the acquisition proceedings were taken under the Land Acquisition Act, the final price was fixed upon negotiated sale agreement. The Assessing Officer has allowed the claim of the assessee for deduction u/s 54B of the I.T.Act. Section 54B of the I.T.Act provides for a deduction on account of transfer of land used for agricultural purpose and for purchase of another agricultural land. T...