Assessee received compensation by way of an award dated 5-8-2016 on account of acquisition of its non-agricultural land by Municipal Corporation under section 11 of Land Acquisition Act, 1894.\u00a0 Assessee claimed that in view of section 96 of Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (RFCTLARR Act) and CBDT Circular no. 36\/2016, dated 25-10-2016, said compensation was exempt under Income-tax Act. Assessing Officer held that as award was passed under section 11 of Land Acquisition Act, provision of RFCTLARR Act would not apply and, accordingly, compensation received was to be treated as business income. CIT(A) allowed the claim. On appeal by Revenue the Tribunal held that\u00a0 since award dated 5-8-2016 was passed after Land Acquisition Act, 1894 stood repealed with effect from 1-1-2014 and replaced by RFCTLARR Act, provisions of RFCTLARR Act would apply. In view of section 96 of RFCTLARR Act and CBDT circular, the\u00a0 compensation is\u00a0 not be taxable. (AY. 2017-18)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 4 : Charge of income-tax-Compulsory acquisition of non-agricultural land-Business income-Compensation is not taxable. [S. 28(i), Land Acquisition Act, 1894, S. 11, Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 [RFCTLARR Act, S 24, 96] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-42820","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-b8E","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/42820","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=42820"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/42820\/revisions"}],"predecessor-version":[{"id":42821,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/42820\/revisions\/42821"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=42820"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=42820"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=42820"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}