Tax on Interest on enhanced compensation arising on compulsory acquisition of agricultural land

Satbir & Ors. Vs ITO (ITAT Chandigarh) Capital gains–Interest on enhanced compensation arising on compulsory acquisition of agricultural land–Taxability Interest earned under section 28 of Land Acquisition Act, 1894, which is on enhanced compensation, is treated as an accretion to the value and therefore, is part of the enhanced compensation or consideration. Therefore, interest on enhanced compensation under section 28 of Land Acquisition Act, 1894, being an integral part of consideration was exempt from capital gains tax under section 10(37). FULL TEXT OF THE ITAT JUDGMENT Th...