Interest awarded u/s 28 of Land Acquisition Act, 1894 is eligible for exemption !

Interest awarded u/s 28 of Land Acquisition Act, 1894 is eligible for exemption !

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Interest awarded under section 28 of Land Acquisition Act, 1894, on enhanced compensation paid for compulsory acquisition of agricultural land, would be eligible for exemption under section 10(37)
[2018] 95 taxmann.com 106 (Bangalore – Trib.)
IN THE ITAT BANGALORE BENCH ‘A’
Income Tax Officer, Ward I & TPS
v.
Basavaraj M Kudarikannur*
N.V. VASUDEVAN, JUDICIAL MEMBER
AND INTURI RAMA RAO, ACCOUNTANT MEMBER
IT APPEAL NOS. 1747 AND 1750 (BANG.) OF 2017
[ASSESSMENT YEAR 2013-14]
JUNE  1, 2018
HELD
■ It is not disputed by the Assessing Officer that the land acquired was agricultural land and the conditions laid down under section 10(37)(i) to (iv) are applicable to the land which is in question which was compulsorily acquired. It is also not in dispute that the interest in question was interest awarded under section 28 of the Land Acquisition Act, 1894. In the given circumstances, the decision of the Gujarat High Court in the case of Movaliya Bhikhubhai Balabhai v. ITO [2016] 70 taxmann.com 45/388 ITR 343 will be applicable to the facts of the present case. [Para 11]
■ In the light of the aforesaid decision of the High Court and in the light of the admitted factual position in the present case, the Commissioner (Appeals) is fully justified in allowing exemption under section 10(37) on the interest received by the assessee under section 28 of the Land Acquisition Act, 1894. [Para 14)

■ In the result, the revenue’s appeal is dismissed.


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