Akhilesh Bansal Vs ITO (ITAT Delhi)
Summary: The appeal was filed by the assessee against the order of the Commissioner of Income-tax (Appeals)/National Faceless Appeal Centre dated 02.01.2026 for AY 2018-19. The dispute concerned the taxability of enhanced compensation of Rs. 2,15,77,773/- and interest of Rs. 2,23,78,473/- received pursuant to compulsory acquisition of agricultural land situated in Village Badha, Tehsil Manesar, District Gurugram by the Haryana Urban Development Authority (HUDA).
The assessee claimed that the acquired land was rural agricultural land situated beyond the prescribed municipal limits and therefore did not constitute a “capital asset” under section 2(14)(iii) of the Income-tax Act, 1961. The Assessing Officer rejected the claim and taxed the enhanced compensation under section 45(5), while treating interest under section 28 of the Land Acquisition Act as “Income from Other Sources”. The CIT(A) confirmed the Assessing Officer’s action.
Before the Tribunal, the assessee relied on registered sale deed, Jamabandi, Khasra Girdawari, mutation records and other revenue documents to establish the agricultural character of the land. The assessee also produced a certificate issued by the Tehsildar, based on a technical survey by M/s Vision Engineering Consultants, certifying that the land was situated 9.1 kilometres from the municipal limits of Gurugram.
