Dismissing the appeal of the Revenue the Tribunal held that where the assessee’s agricultural land was compulsorily acquired by following entire procedure prescribed under Land Acquisition Act, merely because compensation amount was awarded vide order of State Government, determining final award would not change character of acquisition from that of compulsory acquisition to voluntary sale so as to deny exemption under section 10(37) to assessee.(AY. 2015-16)
ITO v. Mohd. Aslam Baggar (2023) 200 ITD 712 (Amritsar)(Trib)
S.10(37) : Capital gains-Agricultural land-With in specified urban limits-Compensation received on account of compulsory acquisition of agricultural land by state Govt is exempt from tax. [S. 2(14)(iii), 45 (5),Land Acquisition Act, 1894,Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (RFCTLARR Act.)]