TMI Blog2022 (4) TMI 89X X X X Extracts X X X X X X X X Extracts X X X X ..... for exemption of the compensation received on compulsory acquisition of land acquired by the Land Acquisition Officer from Income Tax. Accordingly the appeal of the assessee is allowed. - ITA No. 1217/Chd/2019 - - - Dated:- 10-3-2022 - Shri N.K. Saini, Vice President For the Appellant : Nikhil Goyal, Adovcate and Ashok Goyal, CA For the Respondents : Geetinder Mann, Sr. DR ORDER Per N.K. Saini, Vice President This is an appeal by the Assessee against the order dt. 24/06/2019 of the Ld. CIT(A), Patiala. 2. Following grounds have been raised in this appeal. 1. That the order of Ld. Commissioner of Income tax (Appeals), Patiala and Income Tax Officer, Sangrur is against law and facts. 2. That the Commissio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aid contention of the Ld. Counsel for the Assessee. 5. After considering the submissions of both the parties it is noticed that an identical issue having similar facts has already been adjudicated by aforesaid referred to order dt. 31/08/2021 in ITA No. 1182 1183/Chd/2019 for the A.Y. 2015-16 in the case of Shri Satish Kumar, Sangrur and other Vs. ITO, Sangrur. The relevant findings has been given in para 10 to 10.4 which read as under; 10. We have considered the submissions of both the parties and perused the material available on the record. In the present case, it is noticed that the assessee received the compensation on account of land acquired by NHAI. The assessee moved an application before the A.O. for rectification of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irect Taxes ITA.II division, North Block, New Delhi, the 25th of October, 2016 Subject: 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')-reg.- Under the existing provisions of the income-tax Act, 1961 ('the Act'), an agricultural land which is not situated in specified urban area, is not regarded as a capital asset. Hence, capital gains arising from the transfer (including compulsory acquisition) of such agricultural land is not taxable. Finance (No. 2) Act, 2004 inserted section 10(37) in the Act from 01.04.2005 to provide specific exemption ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h has been exempted from levy of income-tax vide section 96 of the RFCTLARR Act shall also not be taxable under the provisions of Income-tax Act, 1961 even if there is no specific provision of exemption for such compensation in the Income-tax Act, 1961. 4. The above may be brought to the notice of all concerned. 5. Hindi version of the order shall follow. Sd/- (Rohit Garg) Deputy Secretary to the Government of India (F. No. 225/88/2016-ITA.II) 10.2 From para 3 of the aforesaid Circular it would be clear that no distinction has been made between compensation received for compulsory acquisition of agricultural land and non agricultural land in the matter of providing exemption from income tax under the RF ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in Land Acquisition, Rehabilitation and Resettlement (Removal of Difficulties) Order, 2015. (2) It shall come into force with effect from the 1 st day of September, 2015. (12 of 15) (3) The provisions of Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, relating to the determination of compensation in accordance with the First Schedule, rehabilitation and resettlement in accordance with the Second Schedule and infrastructure amenities in accordance with the Third Schedule shall apply to all cases of land acquisition under the enactments specified in the Fourth Schedule to the said Act. From the above, it is clear that the applicability of the Acquisition Act of 2013 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lar, if found entitled, irrespective of the fact that it was not produced before the authorities below or was issued by the Central Board of Direct Taxes subsequent to the decision given by the Tribunal, Circular No. 329. Dated February 22, 1982, issued by the Board does not override the provisions of the Act. It is clarificatory in nature. It is a benevolent circular issued in favour of the assessee providing administrative relief and says that if the process involved is not merely conversion of standing trees into firewood but also manufacture of new saleable commodities, the benefit of deduction under section 80J and 80HH would be available. 10.4 In the present case also the CBDT vide Circular No. 36/2016 dt. 25/10/2016 clarified t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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