Dismissing the appeal of the revenue Tribunal held that after the new Land Acquisition Act, 2013, the law has been changed and any compensation or enhanced compensation including interest if any, is completely exempt from Income Tax by virtue of section 96 of RFCTLARR Act 2013. By overriding nature of the new Land Acquisition Act, 2013, the provisions of Income-tax if any which deals with taxability of compensation or interest if any received by an assessee for compulsory acquisition of land becomes redundant and has no application. Order of CIT(A) is affirmed. (AY. 2016-17)
ACIT v. SV Global Mill Ltd. (2021) 61 CCH 0466 / 213 TTJ 232/(2022) 212 DTR 265 (Chennai)(Trib.)
S. 56 : Income from other sources-Land acquisition-Interest on compensation exempt under section 96 of the Act-Not taxable under section 56(2)(vii) of the Act. [S. 10(37). 56(2)(viii), 145A(b), RFCTLAAR Act, 2013, S. 93]