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2021 (1) TMI 887 - AT - Income TaxAddition u/s 69 - unexplained investment - contention of the ld. AR is that the assessee’s property situated in Ranasinghpet, BVK Iyengar Road, Bangalore was acquired by the Special Land Acquisition Officer [SLAO] for Bengaluru Metro and the assessee received a sum as a compensation from the authorities and assessee disclosed this amount as a sale consideration while declaring long term capital gain from the said acquisition of the property and offered the same for taxation - HELD THAT:- The source of payment of ₹ 34.50 lakhs is out of compensation received towards acquisition of property by BMRCL and this was duly disclosed by the assessee. These receipts and payments were duly reflected in the ICICI Bank’s Current A/c No.6251050390981, OTC Road, Bangalore – 560 002. As such, it cannot be considered as unexplained investment by the assessee. Accordingly, we delete the addition made by the AO and sustained by the CIT(Appeals) u/s. 69 of the Act. This ground of the assessee is allowed. Addition of capital gain ignoring the fact that the compensation was received by Metro Railway authorities - When the name of BMRCL was mentioned in Form 26AS showing the details of TDS on payment for acquisition of said property, it cannot be doubted that BMRCL has not acquired the said property. In our opinion, the compensation received by the assessee from BMRCL is exempt from tax in view of CBDT Circular No.36/2016 dated 25.10.2016. Accordingly, the compensation received by the assessee on acquisition of the property by BMRCL is not liable for capital gain. This ground of the assessee is allowed.
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