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2017 (9) TMI 959 - AT - Income TaxRevision u/s 263 - amount received by it on compulsory acquisition of land non liablility to tax under the head ‘Capital gain’ - nature of land sold - According to the CIT in the case of the assessee the agricultural land lost its character as agricultural land after acquisition by the railways because they used the land acquired for non agricultural purpose therefore of the view that the AO ought not to have allowed exemption u/s 10(1) - Held that:- There is a distinction between requisitioning of properties and compensation payable for acquisition of a property under the Land Acquisition Act. The payment for use of an occupation of a property cannot be equated with the payments made for acquisition of the property. In the former case only right to use and enjoy is transferred whereas in the later case there is a complete transfer of the whole interest over or complete ownership over the property. We are therefore of the view that the approach adopted by CIT in the present case was not proper in law. Since the order of the AO is not erroneous the CIT was not justified in invoking the jurisdiction u/s 263 of the Act. We therefore quash the order u/s 263 of the Act and allow the appeal of the assessee.
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