| 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 ACT ? 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.
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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
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