KISHORBHAI NATHABHAI MAKANI,RAJKOT vs. INCOME TAX OFFICER WARD 1(2)(1) RAJKOT, RAJKOT

ITA 701/RJT/2026Status: DisposedITAT Rajkot10 September 2026AY 2016-1713 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that interest on enhanced compensation for compulsory acquisition of agricultural land is part of the compensation and eligible for exemption under Section 10(37) of the Income Tax Act, following the jurisdictional High Court's precedent.

What were the facts?

The assessee's appeal pertained to the assessment year 2016-17. The core issue was whether interest on enhanced compensation for land acquisition was taxable or exempt.

What were the issues?

Whether interest on enhanced compensation for land acquisition is taxable under Section 56(2)(viii) or exempt under Section 10(37) of the Income Tax Act.

Which sections of the Income-tax Act were involved?

Section 56(2)(viii),Section 10(37)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, Rajkot Bench, Rajkot

Before: Dr. Arjun Lal Saini & Shri Sonjoy Sarma

For Appellant: Shri Sagar Shah, Ld. AR
For Respondent: Shri Ganesh Iyer, Ld. Sr. DR
Hearing: 17/08/2026

Per, Dr. Arjun Lal Saini, AM: Captioned appeal filed by the assessee, pertaining to assessment year (AY) 2016-17, is directed against the order under section 250 of the Income- tax Act, 1961 (hereinafter referred to as ‘the Act’) passed by the National Faceless Appeal Centre (NAC) Delhi/Commissioner of Income-tax (Appeals) [in short ‘NFAC/Ld.CIT(A)’], dated 20.03.2026, which in turn arises out of an assessment order passed by the Assessing Officer u/s 143(3) of the Act, dated 15.12.2018.

The order continues below.

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