GOBINDA KUMURA,BANGURKELA vs. INCOME TAX OFFICER, JHARSUGUDA

ITA 609/CTK/2025Status: DisposedITAT Cuttack23 February 2026AY 2018-19Bench: SHRI GEORGE MATHAN (Judicial Member), SHRI MADHUSUDAN SAWDIA (Accountant Member)1 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal perused the compensation order issued by Mahanadi Coalfield Limited (MCL). It noted that the entire amount of Rs. 61,73,207.39 was clearly stated as compensation for the acquisition of agricultural land, which was also the assessee's ancestral land. Therefore, this amount was not taxable.

What were the facts?

The assessee, an agriculturist, received compensation of Rs. 61,73,207.39 for the compulsory acquisition of ancestral agricultural land by Mahanadi Coalfield Ltd. The Assessing Officer treated Rs. 19,96,996.00 of this compensation as interest income and brought it to tax, citing a variation between the disclosed amount and Form 26AS.

What were the issues?

Whether the compensation received by the assessee for the compulsory acquisition of agricultural land, including ancestral property, can be treated as taxable interest income.

Which sections of the Income-tax Act were involved?

Section 194A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, CUTTACK BENCH CUTTACK

Before: SHRI GEORGE MATHAN & SHRI MADHUSUDAN SAWDIA

Hearing: 23/02/2026Pronounced: 23/02/2026

Per Bench : This is an appeal filed by the assessee against the order dated 3.9.2025 passed by CIT(A), NFAC, Delhi in Appeal No.NAFC/2017-18/10220297 for the assessment year 2018-19. 2. Shri Anil Kumar Agarwal, ld AR appeared for the assessee and Shri Sanjib Banerjee, ld Sr DR appeared for the revenue.

3.

It was submitted by ld AR that the only issue in this appeal was against an addition of Rs.19,96,996.00, which has been treated by the Assessing Officer as interest on the compensation awarded t

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 194A

All 1,500 judgments and leading authorities on Section 194A →

Recent GST High Court judgments

Search GST case law →