ITO, WARD-1(1), FARIDABAD, FARIDABAD vs. CHAMAN, FARIDABAD

ITA 2774/DEL/2024Status: DisposedITAT Delhi25 June 2025AY 2017-18Bench: SHRI SATBEER SINGH GODARA (Judicial Member), SHRI S. RIFAUR RAHMAN (Accountant Member)1 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the compensation and interest received on compulsory acquisition of agricultural land are exempt from tax under Section 10(37) of the Income Tax Act, following Supreme Court precedents. The Tribunal also upheld the deletion of the unexplained credit addition.

What were the facts?

The assessee received compensation and interest on compulsory land acquisition. The Assessing Officer treated the entire amount as income, but the CIT(A) deleted the additions, treating the compensation and interest as exempt. The Revenue appealed this decision.

What were the issues?

Whether compensation and interest on compulsory acquisition of agricultural land are exempt from tax, and whether unexplained credit entries are taxable.

Which sections of the Income-tax Act were involved?

Section 10(37),Section 56(2)(viii),Section 68,Section 147,Section 144

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Cases cited in this judgment(16)Show list

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Income Tax Appellate Tribunal, DELHI BENCH: ‘B’ NEW DELHI

Before: SHRI SATBEER SINGH GODARA & SHRI S. RIFAUR RAHMAN

Hearing: 25.06.2025Pronounced: 25.06.2025

PER SATBEER SINGH GODARA, JM This Revenue’s appeal ITA No. 2774/Del/2024 and assessee’s cross objection C.O. No. 103/Del/2024 for assessment year 2017- 18, arises against the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre [in short, the ITA No.2774/Del/2024 & C.O. No. 103/Del/2024

“CIT(A)/NFAC”], Delhi’s DIN and order no. ITBA/NFAC/S/250/2023-24/1063696810(1), dated 30.03.2024, involving proceedings under section 147 r.w.s. 144 of the Income- tax Act, 1961 (hereinafter referred to as ‘the Act’)

The order continues below.

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