TMI Blog2021 (3) TMI 561X X X X Extracts X X X X X X X X Extracts X X X X ..... not find applicability of RFCTAAR Act to the transaction under consideration before us. We are of the opinion that even section 24 is not applicable as in the present case award was passed on 05.02.2013, which is a date prior to the date when RFCTAAR Act was made applicable. Therefore, its provisions are not applicable. Further as per section 5 of the IT Act, income of assessee (compensation received by assessee) is required to be taxed when the said compensation have accrued in favour of the assessee or deemed to have been accrued. Undisputedly, the assessee was entitled to receive the compensation when the award was passed quantifying the amount in favour of the assessee for acquisition of land. Therefore, in our opinion, the cut-off d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0(37) of the Income Tax 'Act 'and all the essential of section 10(37) are fully met by the 'appellant' and therefore, the compensation received by the 'appellant' cannot be subjected to tax. 4. BECUSE, the Ld. 'CIT(A)' has wrongly held that 'appellant' is not entitled to exemption from levy of capital gain under section 45(5) of the 'Act' as the Income failing to take note of the fact that compensation was received on 31.03.2014 after the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (hereinafter referred to as the 'RFCTLARR' Act) came into force with effect from 01 January, 2014 and such compensation as per section 24 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pt from tax. It was further submitted that no tax should be collected or levied without any authority of law; that the compensation was received by appellant on 31.03.2014 after the RFCTLARR Act came into force. The ld. counsel for assessee relied upon various decisions, as reproduced in assessee s written submissions by the ld. CIT(A). 4. The ld. DR has disputed the submissions made by the ld. AR for the assessee orally as well as by written submissions. 5. We have heard the rival submissions and have gone through the material available on record. It is clear that the land in question was acquired by National Highway Authority of India on 05.02.2013 under the National Highway Authority Act, 1856. When the award was passed acquiring t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e and place and to state the nature of their respective interest in such land. (5) If the amount determined by the competent authority under subsection (1) or sub-section (2) is not acceptable to either of the parties, the amount shall, on an application by either of the parties, be determined by the arbitrator to be appointed by the Central Government. (6) Subject to the provisions of this Act, the provisions of the Arbitration and Conciliation Act, 1996 (26 of 1996) shall apply to every arbitration under this Act. (7) The competent authority or the arbitrator while determining the amount under sub-section (1) or sub-section (5), as the case may be, shall take into consideration- (a) the market value of the land on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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