KALABHAI RAGAJI RABARI,BANASKANTHA vs. ITO, WARD-1, PALANPUR, BANASKANATHA

ITA 1870/AHD/2026Status: DisposedITAT Ahmedabad07 August 2026AY 2019-205 pages
AI SummaryAllowed

What were the facts?

The assessee received Rs. 1,89,17,479/- in his bank account, which was compensation for compulsory acquisition of agricultural land along with interest. The Assessing Officer made a best judgment assessment as the assessee did not provide details. The CIT(A) dismissed the appeal for non-prosecution.

What did the Tribunal hold?

The Tribunal held that the amount received, including interest, was in the nature of compensation for compulsory acquisition of agricultural land and was therefore exempt from tax. The addition made by the Assessing Officer was deleted.

What were the issues?

The key issues were the taxability of interest received on enhanced compensation for compulsory acquisition of agricultural land and whether the assessee was provided with sufficient opportunity to be heard.

Which sections of the Income-tax Act were involved?

Section 10(37),Section 45(5),Section 145B(1),Section 56(2)(viii),Section 69A,Section 148,Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AHMEDABAD “B” BENCH

Before: DR. BRR Kumar & Shri Rahul Chaudhary

PER : DR. BRR KUMAR, VICE PRESIDENT:-

This appeal is filed by the Assessee against the appellate order dated 27/11/2025 passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, (in short referred to as “CIT(A)”), under section 250 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) relating to the Assessment Year 2019-20. I.T.A No. 1870/Ahd/2026 A.Y. 2019-20 2

3.

Brief facts of the case are that, for Asst. Yea

The order continues below.

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