JAGDISHBHAI KABABHAI SAKARIA,JETPUR, DIST. RAJKOT vs. THE DCIT/ACIT, CIRCLE-1(1), RAJKOT, RAJKOT

ITA 47/RJT/2026Status: DisposedITAT Rajkot16 September 2026AY 2016-175 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal noted that while Supreme Court and Gujarat High Court decisions suggest interest under Section 28 of the Land Acquisition Act is part of compensation, the assessee failed to provide complete details and the relevant award. Therefore, the issue was restored to the CIT(A) for de novo adjudication.

What were the facts?

The assessee received interest on additional compensation for compulsory acquisition of agricultural land. The Assessing Officer added this interest to the total income, and the CIT(A) upheld the addition. The assessee appealed, claiming the interest was part of the compensation and thus exempt.

What were the issues?

Whether interest received on additional compensation for compulsory acquisition of land is taxable or exempt, and whether the assessee provided sufficient documentation to prove its claim.

Which sections of the Income-tax Act were involved?

Section 28,Section 143(3),Section 56(2)(viii)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, RAJKOT “DB” BENCH, RAJKOT

Before: DR. B.R.R. KUMAR, VICE-SHRI SONJOY SARMA

For Respondent: Shri Gopi Nath Chaubey, Sr. DR
Hearing: 28.07.2026Pronounced: 16.09.2026

PER DR. B.R.R. KUMAR, VICE-PRESIDENT:

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The captioned appeal has been filed by the assessee against the order passed by the Ld. Commissioner of Income Tax (Appeals) (hereinafter referred to as “the Ld. CIT(A)”), National Faceless Appeal Centre (in short “NFAC”), Delhi vide order dated 19.11.2025 relevant to Assessment Year 2016-17. 2. The assessee has raised the following grounds of appeal:

1] The grounds raised in this appeal are without prejudice to one another. 2] The Ld. A.O. grievously erred in law and on facts in taxing the amount of interest received on additional compensation on compulsory acquisition of agricultural land granted by the Civil Co

The order continues below.

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