| Question And Answer | |
|---|---|
| Subject: | CITATION OF CHENNAI ITAT JUDGEMENT IN THE CASE OF M/S S V GLOBAL MILL LTD |
| Category: | Income-Tax |
| Querist: | ANIRUDDHA NARAYANRAO DESHPANDE |
| Answered by: | Research Team |
| Tags: | Interest, land acquition, taxability of compensation, taxability of interest on compensation |
| Date: | May 22, 2021 |
INTEREST ON COMPENSATION RECEIVED FOR LAND ACQUISITION FOR DELAYED PAYMENT/S BY NATIONAL HIGHWAY AUTHORITY OF INDIA LTD WHEHERR TAXABLE IF THE COMPENSATION ITSELF IS EXEMPT UNDER RECLLAR ACTÂ ? PLEASE REFER CHENNAI ITAT JUDGEMENT IN THE CASE OF M/S SV GLOBAL MILL LTD.
The Punjab and Haryana High Court in Mahender Pal Narang v. CBDT [2020] 120 taxmann.com 400 (P & H) (HC) after considering the Supreme Court judgement in Ghanshyam (HUF) [2009] 315 ITR 1 (SC) and also relying on sections 56(2) and 57 of the 1961 Act has held that interest received on compensation received for land Acquisition is held to be taxable . We are not able to get the Copy of the Chennai ITAT.
Disclaimer: This article is only for general information and is not intended to provide legal advice. Readers desiring legal advice should consult with an experienced professional to understand the current law and how it may apply to the facts of their case. Neither the author nor itatonline.org and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any inaccurate or incomplete information in this article nor for any actions taken in reliance thereon. No part of this document should be distributed or copied (except for personal, non-commercial use) without express written permission of itatonline.org
In SV Global Mill it was held that interest received by the assessee towards delayed payment of compensation for compulsory acquisition of land is akin to compensation for compulsory acquisition of land, which is exempt from Income Tax by virtue of section 96 of RFCTLARR Act 2013.
CA Manoj Gupta
Jodhpur
9828510543