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2022 (9) TMI 708 - AT - Income TaxNature of receipts - Taxability of the compensation received by the land owners for the land acquired under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 ('RFCTLAAR Act') - HELD THAT:- It is seen that the Government had compulsorily acquired the land of the assessee vide Award dated 15.01.2014 whereas the compensation cheque was dated 20.03.2015. It is also not in dispute that this land was acquired by the National Highways Authority of India in terms of section 3(A)(1) of the National Highway Act, 1956 for the purpose of widening of National Highway No. 64 on the stretch of land from KM 5.700 to KM 209.55 on Patiala – Sangrur – Bhatinda Section in District Sangrur in the state of Punjab. It is also not in dispute that vide Notification No. SO1138 (E) dated 03.05.2013, the Central Government had duly published the Notification regarding the acquisition and had also specified that the said land was to vest absolutely in the Central Government free from all encumbrances. The facts in this case are identical to the facts in the case of DCIT Vs. Shri Ram Gopal [2022 (7) TMI 256 - ITAT CHANDIGARH] held that the compensation on such compulsorily acquired land was exempt from taxation. In this case, the Division Bench had duly taken note of the fact that land had been acquired from about 3000 land owners and only 636 land owners had been disbursed compensation till 31.12.2014 and the majority of land owners were given payments after 31.11.2014 i.e. after the date of coming into operation of the ‘RFCTLARR’ Act. CIT(A) was not justified in confirming the action of the A.O. in not accepting the claim of the assessee for exemption of the compensation received on compulsory acquisition of land acquired by the Land Acquisition Officer from Income Tax In the present case also, although the date of award is prior to 31.12.2014, the cheque for compensation was received after first January 2015 and, therefore, the order of the Division Bench of the ITAT in the case of DCIT Vs. Ram Gopal (supra) would squarely cover the case of this assessee as well. Also see another case i.e. of Shri Satish Kumar, Sangrur and Other [2021 (12) TMI 161 - ITAT CHANDIGARH] - Thus allow the appeal of the assessee.
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