The assessee’s land was compulsorily acquired by the National Highways Authority of India under the National Highways Act, 1956. In the return for A.Y. 2017-18, the assessee offered to tax the compensation received on such acquisition as short-term capital gains and paid tax thereon. Subsequently, he filed a rectification application seeking refund on the ground that compensation received on compulsory acquisition of land was exempt from tax under s. 96 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. The Assessing Officer rejected the claim holding that the National Highways Act, 1956 was included in the Fourth Schedule to the 2013 Act and, therefore, by virtue of s. 105(1), the provisions of the 2013 Act, including s. 96, were not applicable. The Commissioner (Appeals) and the Tribunal affirmed the rejection. On appeal, the High Court held that though acquisitions under the National Highways Act, 1956 were initially excluded by s. 105(1), s. 105(3) empowered the Central Government to extend the beneficial provisions of the 2013 Act to enactments specified in the Fourth Schedule. Pursuant thereto, the Central Government issued the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement (Removal of Difficulties) Order, 2015, making the provisions relating to determination of compensation, rehabilitation and resettlement applicable to acquisitions under the enactments in the Fourth Schedule. Once compensation is determined under the beneficial regime of the 2013 Act, the consequential benefits flowing therefrom, including exemption from income-tax under s. 96, must also apply. Denial of exemption to land acquired under the National Highways Act would defeat the object of the 2015 Order and result in discrimination. Accordingly, the Court held that compensation paid by NHAI for compulsory acquisition of land under the National Highways Act, 1956 was exempt from income-tax and the assessee was entitled to consequential relief/refund. The appeal was allowed. (AY. 2017-18)