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2022 (10) TMI 599 - ITAT MUMBAICompensation received on compulsory acquisition of land - Whether CIT(A) was right in holding that the compensation received on compulsory acquisition of land was not taxable and failing to appreciate that the award of compensation to the assessee was made u/s 11 of the Land Acquisition Act 1894 and not an award under RFCTLAAR Act 2013 and hence the provisions of the section 96 of the RFCTLAAR Act 2013 is not applicable in the case of the assessee and the compensation was rightly treated as business income of the assessee? - HELD THAT:- On careful perusal of the award dated 5/8/2016, it is clear that according to rule 18 (3) of the rights to fair compensation and transparency in land acquisition, rehabilitation and resettlement rules 2014 the Commissioner has granted approval to this award. The award was also passed after the land acquisition act 1984 stood repealed from 1/1/2014 which has been replaced by the right to fair compensation and transparency in land acquisition, rehabilitation and resettlement act of 2013. The provisions of Section 24 of the act clearly provides that that when no award u/s 11 of the said land acquisition act has been made, then all the provisions of the new act relating to the determination of compensation shall apply. It also excludes where the award is already been made u/s 11 of that act and for that particular purpose only the old act continue to apply. In this case the award has been made on 5/8/2016. Therefore the new act shall apply. According to Section 96 of that act income tax shall not be levied on any award agreement made Under that act except as provided u/s 46 of that act. This award/agreement is not u/s 46 - Therefore the income arising in the form of compensation shall be governed by the provisions of Section 96 of the act. Accordingly the income is not chargeable to income tax. The issue is squarely covered in favour of the assessee by the decision in Vishwanatha M V Chief Commissioner [2020 (5) TMI 465 - KERALA HIGH COURT], in case of C nand Kumar [2017 (4) TMI 662 - ANDHRA PRADESH HIGH COURT] as well as circular number 36/2016 dated 25/10/2016 which clarified in paragraph number 3 of the act that compensation received in respect of award agreement which is been exempted from levy of income tax as per provisions of Section 96 of that act shall also not be taxable Under the provisions of the income tax act. As CIT - A has carefully considered all the above judgement as well as the provision of new law and the old law of acquisition of land and therefore held that sum received by the assessee is not taxable, cannot be found fault with. Accordingly we confirm the order of the CIT- A and dismiss ground number 1 of the appeal of the AO. Addition on account of deemed income from house property in respect of unsold flats deleted by CIT - A - HELD THAT:- The identical issue arose in the case of the assessee for assessment year 2016 -17 which travelled up to the level of the coordinate bench where the above addition was deleted. CIT – A following that decision of the coordinate bench in assessee’s own case for assessment year 2016 - 17 [2020 (9) TMI 1271 - ITAT MUMBAI] has deleted the addition. DR could not show us any reason to deviate from the order of the coordinate bench in assessee’s own case. In result, respectfully following the decision of the coordinate bench in ITA in case of the assessee for assessment year 2016 – 17, we confirm the order of the learned CIT – A in deleting the above addition. We dismiss ground of the appeal.
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