“compulsory acquisition”

Capital GainsSection 45(5)Section 45(5)516 judgments

The decision most relied on for compulsory acquisition is CIT v. Ghanshyam (HUF) (315 ITR 1), cited in 363 judgments on BharatTax.

Leading authorities on compulsory acquisition

CIT v. Ghanshyam (HUF)

315 ITR 1 · 2009 · Supreme Court

363

citing judgments

Interest received under Section 28 of the Land Acquisition Act, 1894, is considered part of the enhanced compensation on compulsory acquisition of land. It is taxable as 'capital gains' and not separately as 'interest income' under the head Income from Other Sources.

Mahender Pal Narang v. CBDT

161 Taxmann.com 301 · 2024 · High Court

178

citing judgments

Interest received as enhanced compensation under Section 28 of the Land Acquisition Act, 1894, for compulsory acquisition of land is taxable as "income from other sources" under Sections 56(2)(viii) and 57(iv) of the Income-tax Act, 1961, and is not exempt under Section 10(37).

Movaliya Bhikhubhai Balabhai v. ITO TDS

388 ITR 343 · 2016 · High Court

128

citing judgments

Interest paid on compensation or enhanced compensation for compulsory acquisition of land forms part of the compensation itself and is not taxable as interest income under section 56(2)(viii) or section 145A.

Sham Lal Narula (Dr.) v. CIT

53 ITR 151 · 1964 · Supreme Court

100

citing judgments

Interest received under Section 28 of the Land Acquisition Act, 1894, on enhanced compensation does not form part of the compensation itself but is taxable as 'income from other sources', analogous to interest under Section 34 of the Act.

(supra), Rama Bai v. CIT

181 ITR 408 · 1990 · Supreme Court

citing judgments

Interest received on delayed payment or enhanced compensation awarded under compulsory acquisition is a revenue receipt and is liable to income tax.

Shri Manjeet Singh HUF v. UOI & Others in CWP No. 15506 of 2013; Shri Puneet Singh vs. CIT

110 Taxmann.com 116 · 2019 · Reported

citing judgments

Interest received on compensation or enhanced compensation from compulsory acquisition of land is taxable under the head 'Income from other sources' in the year of receipt, as per the amended provisions, with a 50% deduction available under section 57(iv).

Bikram Singh v. Land Acquisition Collector

224 ITR 551 · 1997 · Supreme Court

citing judgments

Interest received as income on delayed payment of compensation under Sections 28 or 31 of the Land Acquisition Act is a taxable revenue receipt, chargeable to income tax under the head 'income from other sources'.

CIT v. Hindustan Housing and Land Development Trust Ltd.

161 ITR 524 · 1986 · Supreme Court

citing judgments

Income does not arise or accrue when the right to receive payment or compensation is inchoate, contingent, or in dispute, as such a right does not create a debt. This principle determines the correct year of taxability, particularly for compensation under litigation.

Judgments citing compulsory acquisition

Mallikarjunaiah Adveeshaiah Hullukunte, Bengaluru vs. Assisstant Commissioner of Income Tax, Circle 6(2)(1), Bangalore

In the result, the appeal is allowed for statistical purposes

ITA 355/BANG/2025[2017-18]Status: DisposedITAT Bangalore02 Jul 2025AY 2017-18

Bench: Shri Waseem Ahmed & Shri Keshav Dubeyassessment Year: 2017-18

For Appellant: Shri Balram R Rao, AdvocateFor Respondent: Shri Subramanian S, JCIT

Section 143(3)Section 250Section 54D

from capital gains. 3. During assessment proceedings, the Assessing Officer (AO) noticed that the assessee had received compensation from the Government of Karnataka for compulsory acquisition of his hotel building and land. The assessee had claimed long-term capital gain of ₹1,65,51,367.00 only. He also claimed deduction ... appeal before us. 7. The Ld. AR before us contended that the total compensation of ₹9.23 crores received by the assessee was for compulsory acquisition of land by the Government of Karnataka for public infrastructure. The Ld. AR contends that this amount is fully exempt under the Right to Fair

Teckmen Systems, Mumbai vs. ITO Ward 27(3)(1), Mumbai

In the result, the appeal filed by the assessee is allowed as per the above terms

ITA 28/MUM/2025[2019-20]Status: DisposedITAT Mumbai30 Jun 2025AY 2019-20

Bench: MS. KAVITHA RAJAGOPAL (Judicial Member), SMT. RENU JAUHRI (Accountant Member)

For Appellant: Shri G. P. Mehta, CAFor Respondent: Shri Ajit Pal Singh, SR. DR

Section 143Section 143(1)Section 143(1)(a)Section 250Section 50CSection 55A

land or building or both' is well recognized under the I.T. Act. Sec. 54D deals with certain cases in which capital gain on compulsory acquisition of land and building is charged. Sub-sec.(1) of sec. 54D opens with : "Subject to the provisions of sub- section (2), where the capital ... gain arises from the transfer by way of compulsory acquisition under any law of a capital asset, being land or building or any right in land or building, forming part of an industrial undertaking…..". It is palpable from sec. 54D that 'land or building' is distinct from 'any right

Mr. 3 Sigma Global Fund, Mumbai vs. Assistant Commissioner of Income Tax Int Tax Circle 4(2)(1), Mumbai

Accordingly we hold that the gain arising from the transfer of Derivatives cannot be taxed in India and the addition made in this regard stands deleted. Ground No. 1 raised by the assessee is hereb...

ITA 1130/MUM/2025[2022-23]Status: DisposedITAT Mumbai30 Jun 2025AY 2022-23

Bench: Ms Padmavathy S, Am & Shri Raj Kumar Chauhan, Jm

For Appellant: Bhaumik Goda, ARFor Respondent: Shri Krishna Kumar, Sr. DR

Section 143(3)

Surender Kumar, Gurgaon vs. ITO, Ward 4 (1), Gurgaon

In the result, appeal of the assessee is allowed

ITA 351/DEL/2025[2017-18]Status: DisposedITAT Delhi30 Jun 2025AY 2017-18

Bench: Shri Satbeer Singh Godara & Shri S. Rifaur Rahman

Section 142(1)Section 143Section 143(1)(a)Section 143(2)Section 143(3)Section 147Section 263Section 28Section 56(2)(viii)Section 57

Land Acquisition Act. The assessee responded vide letter (copy at pages 3-58 of Paper Book) that the assessee received enhanced compensation on compulsory acquisition of his agricultural land by Haryana Govt. of Rs. 6,86,17,767/- which included interest under section 28 of Land Acquisition ... section 45(5) of the Act. However, in the case of an individual or HUF such capital gain from 4|Page ITA No.351/Del/ 2025 compulsory acquisition of agricultural land being capital asset is exempt from tax under section 10(37) of the Act. 6.4 The Ld. AR pointed

Gangunaidu Sabbavarapu, Visakhapatnam vs. Income Tax Officer, Ward-2(5), Visakhpatnam

ITA 177/VIZ/2025[2023-24]Status: DisposedITAT Visakhapatnam27 Jun 2025AY 2023-24

Section 10(37)Section 139(1)Section 143(1)Section 2(37)Section 250Section 254Section 96

have dismissed the appeal filed by the assessee, when assessee placed a reasonable claim for exemption of capital gains, arising on account of compulsory acquisition, from Income-tax in view of section 96 of REFTLAR Act and Section 2(37) of Income-tax Act, 1961. 3. The Learned ... have dismissed the appeal filed by the assessee, when assessee placed a reasonable claim for exemption of capital gains, arising on account of compulsory acquisition, from Income-tax in view of section 10(37) of Income-tax Act, 1961, in addition to the provisions of section 96 of REFTLAR

Emerging India Focus Funds, Mauritius vs. ACIT, Circle Int. Taxation 1(2)(2), Delhi

ITA 1963/DEL/2025[2022-23]Status: DisposedITAT Delhi25 Jun 2025AY 2022-23

Bench: Shri Anubhav Sharma & Shri Manish Agarwal

For Appellant: Shri Ajay Vohra, Sr. AdvocateFor Respondent: Shri Abhishek Sharma, CIT-DR

Section 143(2)Section 143(3)

this article, the term "alienation" means the sale, exchange, transfer, or relinquishment of the property or the extinguishment of any rights therein or the compulsory acquisition thereof under any law in force in the respective Contracting States. 8,5 The assesses has the following type of transactions post ... this article, the term "alienation" means the sale, exchange, transfer, or relinquishment of the property or the extinguishment of any rights therein or the compulsory acquisition thereof under any law in force in the respective Contracting States. (iv) On perusal of the above provisions of Article

ITO, Ward-1(1), Faridabad vs. Chaman, Faridabad

In the result, appeal of the assessee is allowed

ITA 2774/DEL/2024[2017-18]Status: DisposedITAT Delhi25 Jun 2025AY 2017-18

Bench: Shri Satbeer Singh Godara & Shri S. Rifaur Rahmanassessment Year: 2017-18 Vs. Chaman, Income Tax Officer, Ward-1(1), H. No. 437, Sector-9, Faridabad Faridabad Pan: Bfapd6698P (Appellant) (Respondent) With C.O. No.103/Del/2024 [Arising Out Of Ita No.2774/Del/2024] Assessment Year: 2017-18 Vs. Income Tax Officer, Chaman, H. No. 437, Sector-9, Ward-1(1), Faridabad, Haryana Faridabad Pan: Bfapd6698P (Appellant) (Respondent) Assessee By Sh. Gaurav, Adv. Department By Sh. Rajesh Kumar Dhanesta, Sr. Dr Date Of Hearing 25.06.2025 Date Of Pronouncement 25.06.2025 Order Per Satbeer Singh Godara, Jm This Revenue’S Appeal Ita No. 2774/Del/2024 & 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

Section 147Section 250(4)

received Rs. 2,23,57,235/- in her bank account on 30.04.2016. This amount includes enhance compensation of Rs. 95,50,853/- for compulsory acquisition of the agriculture land owned by the appellant and interest of Rs. 1,28,06,342/-(after deduction ... provision of section 10(37) of the Income Tax Act 1961, compensation / enhanced compensation received by an individual in lieu of compulsory acquisition of agricultural land by the government is exempt from income tax. Therefore, I am of the considered view that the amount of Rs. 95,50,853/-received

Abc Paper Products, Agra vs. Income Tax Officer 1(1)(1) Agra, Agra

ITA 146/AGR/2025[2018-19]Status: DisposedITAT Agra24 Jun 2025AY 2018-19

Bench: Shri Sunil Kumar Singh & Shri Manish Agarwal

Section 10(37)Section 143(3)Section 250Section 250(4)Section 250(6)

agricultural income of Rs.49,50,000/- which was claimed as exempt u/s 10(37) of the Act, being compensation received from NHAI on compulsory acquisition of its land. The case of the assessee was selected for ʻlimited scrutiny' for reason “Large agricultural income in comparison to total income ... highly unjustified, no addition is liable to be sustained, same is liable to be deleted. 3. That no capital gain arises on the compulsory acquisition of land acquired under RFCTLARR Act, the AO without making any enquiry and not having any evidence, has made the addition, addition made

Anant Changu Mokal, Dhatav, Kolad Roha vs. National Faceless Assessment Centre, Delhi

In the result, appeal of the assessee is allowed for statistical purpose

ITA 2341/PUN/2024[2019-20]Status: DisposedITAT Pune23 Jun 2025AY 2019-20

Bench: Dr.Dipak P. Ripote & Shri Vinay Bhamoreआयकर अपील सं. / Ita No.2341/Pun/2024 िनधा"रण वष" / Assessment Year: 2019-20 Anant Changu Mokal, V National Faceless Dhatav Midc Colony, Kokad S Assessment Centre. Roha, Roha Av S.O., Raigarh – 402116. Pan: Ahnpm1926F Appellant/ Assessee Respondent / Revenue Assessee By Ca Naina Chaurasia – Ar Revenue By Shri Ramnath P Murkunde – Dr Date Of Hearing 24/04/2025 Date Of Pronouncement 23/06/2025 आदेश/ Order Per Dr. Dipak P. Ripote, Am: This Appeal Filed By The Assessee Is Against The Order Of Ld.Commissioner Of Income Tax(Appeals)[Nfac], Passed Under Section 250Of The Income Tax Act, 1961; Dated 20.09.2024For Assessment Year2019-20. The Assessee Has Raised The Following Grounds Of Appeal : “1. The Learned Ctt(A) Nfac Erred In Law & On Facts In Confirming Addition Of Rs.1,38,86,973/- As Interest Income Received On Account Of Compulsory Land Acquisition U/S 28 Of The Land Acquisition Act, Thus

Section 139(1)Section 143(1)Section 145ASection 194ASection 250oSection 28Section 34Section 56(2)(viii)

processing of the return u/s 143(1). 2. It is an undisputed fact that the agricultural land belonging to the Assessee came under compulsory acquisition. The said agricultural land (which was under cultivation) situating at Village Navhe, was not a capital asset as defined under the Income ... year, assessee received enhanced compensation of Rs.1,56,01,648/- and interest on delayed compensation at Rs.2,73,73,947/-, on account of compulsory acquisition of land from Special Land Acquisition Officer. The Assessing Officer held that enhanced compensation is exempt under section 10(37) of the Act, accepting assessee

Hari Singh, Palwal vs. ITO, Ward-1(3), Faridabad

In the result, appeal of the assessee is allowed

ITA 4082/DEL/2024[2019-20]Status: DisposedITAT Delhi23 Jun 2025AY 2019-20

Bench: Shri Satbeer Singh Godara & Shri S. Rifaur Rahman

Section 142(1)Section 143Section 143(1)(a)Section 143(2)Section 143(3)Section 263Section 28Section 56(2)(viii)Section 57

Land Acquisition Act. The assessee responded vide letter (copy at pages 3-58 of Paper Book) that the assessee received enhanced compensation on compulsory acquisition of his agricultural land by Haryana Govt. of Rs. 6,86,17,767/- which included interest under section 28 of Land Acquisition ... year of receipt as per section 45(5) of the Act. However, in the case of an individual or HUF such capital gain from compulsory acquisition of agricultural land being capital asset is exempt from tax under section 10(37) of the Act. - 6.4 The Ld. AR pointed

Sanjay Kumar Baid, Raipur vs. Income Tax Officer, Ward 4(1), Raipur

In the result, appeal of the assessee is dismissed

ITA 57/RPR/2025[2017-18]Status: DisposedITAT Raipur18 Jun 2025AY 2017-18

Bench: Shri Partha Sarathi Chaudhury & Shri Arun Khodpiaआयकर अपील सं. / Ita No.57/Rpr/2025 "नधा"रण वष" / Assessment Year : 2017-18 Sanjay Kumar Baid Arihant Bearing & Mill Stores, Opp. Deshbandhu School, Station Road, Raipur (C.G.)-492 001 Pan: Acipj2887L ........अपीलाथ" / Appellant बनाम / V/S. The Income Tax Officer, Ward-4(1), Raipur (C.G.) ……""यथ" / Respondent

For Appellant: Shri Adarsh Jain, CAFor Respondent: Dr. Priyanka Patel, Sr. DR

Section 154Section 96

case, which can be decided, at a glance and needs a detailed verification. Moreover, when the appellant has stated that the compulsory acquisition falls under section 96 of RFCTLARR Act, 2013, no evidence has been brought to such effect, even at the time of appellate proceedings. The Chhattisgarh Sub-divisional

Gokulakrishna, Chennai vs. Deputy Commissioner of Income Tax, Non Corporate Circle 8(1), Chennai

In the result, the appeal filed by the assessee is allowed and the stay

ITA 1088/CHNY/2025[2017-18]Status: DisposedITAT Chennai17 Jun 2025AY 2017-18

Bench: Shri George George Kand Shri Jagadish

For Appellant: yeast Ft az A/For Respondent: arare 41 aréra/

Section 147Section 250

capital asset, includes,- (i) the sale, exchange or relinquishment of the asset; or (ii) the extinguishment of any rights therein; or (iii) the compulsory acquisition thereof under any law; or (iv) — in a case where the asset is converted by the owner thereof into, or is treated

DCIT., Circle-13(1), Hyderabad vs. The Singareni Collieries Company Limited, Kothagudem

In the result, assessee’s appeals for the A

ITA 308/HYD/2024[AY-2020-2]Status: DisposedITAT Hyderabad12 Jun 2025

Bench: Shri Vijay Pal Rao, Vice-A N D Shri Manjunatha, G.आ.अपी.सं /Ita Nos.283, 284 & 286/Hyd/2024 (िनधा"रण वष"/Assessment Years: 2015-16, 2016-17 & 2020-21) Singareni Collieries Vs. Acit, Circle – 1 Company Limited Khammam & Kothagudem Acit, Circle 13(1) Pan:Aaact8873F Hyderabad & आ.अपी.सं /Ita Nos.300, 301 & 308/Hyd/2024 (िनधा"रण वष"/Assessment Years: 2015-16, 2016-17 & 2020-21) Vs. Singareni Collieries Dy. Cit, Circle 13(1) Company Limited Hyderabad Kothagudem Pan:Aaact8873F (Appellant) (Respondent) िनधा""रती "ारा/Assessee By: Shri M.V.Anil Kumar, Advocate राज" व "ारा/Revenue By:: Shri B Balakrishna, Cit (Dr) सुनवाई की तारीख/Date Of Hearing: 10/06/2025 घोषणा की तारीख/Pronouncement: 12/06/2025 आदेश/Order Per Bench: These 3 Sets Of Cross Appeals Filed By The Assessee As Well As The Revenue Are Directed Against The 3 Separate Orders All Dated 30/01/2024 Of The Learned Cit (A)-Nfac Delhi, For The A.Ys 2015-16, 2016-17 & 2020-21 Respectively. The Assessee As Well As The Revenue Have Raised The Following Grounds Of Appeals For 3 A.Ys:

For Appellant: Shri M.V.Anil Kumar, AdvocateFor Respondent: : Shri B Balakrishna, CIT (DR)

Section 40A(9)

assessee as it would have been computed before applying the said proviso;(2)"sold" includes a transfer by way of exchange or a compulsory acquisition under any law for the time being in force but does not include a transfer, in a scheme of amalgamation, of any asset

DCIT, Circle-13(1), Hyderabad vs. The Singareni Collieries Company Limited, Kothagudem

In the result, assessee’s appeals for the A

ITA 301/HYD/2024[2016-17]Status: DisposedITAT Hyderabad12 Jun 2025AY 2016-17

Bench: Shri Vijay Pal Rao, Vice- & Shri Manjunatha, G.

For Appellant: Shri M.V.Anil Kumar, Advocate

Section 194Section 32ASection 37Section 40Section 40A(9)

DCIT., Circle-13(1), Hyderabad vs. The Singareni Collieries Company Ltd, Kothagudem

In the result, assessee’s appeals for the A

ITA 300/HYD/2024[2015--16]Status: DisposedITAT Hyderabad12 Jun 2025

For Appellant: Shri M.V.Anil Kumar, AdvocateFor Respondent: : Shri B Balakrishna, CIT (DR)

Section 40A(9)

Singareni Collieries Company Limited, Kothagudem vs. DCIT., Circle-13(1), Hyderabad

ITA 286/HYD/2024[2020-21]Status: DisposedITAT Hyderabad12 Jun 2025AY 2020-21

Bench: Shri Vijay Pal Rao, Vice- & Shri Manjunatha, G.आ.अपी.सं / Ita Nos.283, 284 & 286/Hyd/2024 (निर्धारण वर्ष/Assessment Years: 2015-16, 2016-17 & 2020-21) Singareni Collieries Vs. Acit, Circle – 1 Company Limited Khammam & Kothagudem Acit, Circle 13(1) Pan:Aaact8873F Hyderabad & आ.अपी.सं / Ita Nos.300, 301 & 308/Hyd/2024 (निर्धारण वर्ष/Assessment Years: 2015-16, 2016-17 & 2020-21) Vs. Dy. Cit, Circle 13(1) Hyderabad Singareni Collieries Company Limited Kothagudem Pan:Aaact8873F (Appellant) (Respondent) निर्धारिती द्वारा / Assessee By: Shri M.V.Anil Kumar, Advocate राजस्व द्वारा / Revenue By:: Shri B Balakrishna, Cit (Dr) सुनवाई की तारीख / Date Of Hearing: 10/06/2025 घोषणा की तारीख / Pronouncement: 12/06/2025 आदेश/Order Per Bench: These 3 Sets Of Cross Appeals Filed By The Assessee As Well As The Revenue Are Directed Against The 3 Separate Orders All Dated 30/01/2024 Of The Learned Cit (A)-Nfac Delhi, For The A.Ys 2015-16, 2016-17 & 2020-21 Respectively. The Assessee As Well As The Revenue Have Raised The Following Grounds Of Appeals For 3 A.Ys:

For Appellant: Shri M.V.Anil Kumar, AdvocateFor Respondent: : Shri B Balakrishna, CIT (DR)

Section 194Section 32ASection 37Section 40Section 40A(9)

ITA Nos 283 284 286 and 300 301 and 308 of 2024 Singareni Collieries Company Ltd आयकर अपीलीय अधिकरण, हैदराबाद

Singareni Collieries Company Limited, Kothagudem vs. ACIT., Circle-1, Khammam

In the result, assessee’s appeals for the A

ITA 284/HYD/2024[2016-17]Status: DisposedITAT Hyderabad12 Jun 2025AY 2016-17

For Appellant: Shri M.V.Anil Kumar, AdvocateFor Respondent: : Shri B Balakrishna, CIT (DR)

Section 40A(9)

Singareni Collieries Company Limited, Kothagudem vs. ACIT., Circle- 1, Khammam

In the result, assessee’s appeals for the A

ITA 283/HYD/2024[2015-16]Status: DisposedITAT Hyderabad12 Jun 2025AY 2015-16

For Appellant: Shri M.V.Anil Kumar, AdvocateFor Respondent: : Shri B Balakrishna, CIT (DR)

Section 40A(9)

Deputy Commissioner of Income Tax, Central Circle-2(1), Nagpur vs. M/S. Aakar Hotels, Nagpur

In the result, appeal of the revenue is dismissed

ITA 47/NAG/2023[2013-14]Status: DisposedITAT Nagpur09 Jun 2025AY 2013-14

Bench: Shri V. Durga Rao, Hon'Ble & Shri K.M. Roy, Hon'Ble Accountant, Member

Section 147Section 148

capital asset, includes, (i) the sale, exchange or relinquishment of the asset; or (ii) the extinguishment of any rights therein; or (iii) the compulsory acquisition thereof under any law; or (iv) in a case where the asset is converted by the owner thereof into, or is treated

Income Tax Officer, Panipat vs. Dinesh Kaushik, Panipat

In the result, appeal of the assessee is allowed

ITA 5753/DEL/2024[2018-19]Status: DisposedITAT Delhi05 Jun 2025AY 2018-19

Bench: Shri Satbeer Singh Godara & Shri Manish Agarwalassessment Year: 2018-19 Vs. Sh. Dinesh Kaushik, Income Tax Officer, Panipat Vpo Baljattan, Panipat, Haryana Pan: Awjpk9483E (Appellant) (Respondent) Assessee By None Department By Sh. Rajesh Kumar Dhanesta, Sr. Dr

Section 10(37)Section 142(1)Section 143Section 143(1)(a)Section 143(2)Section 143(3)Section 145BSection 263Section 28Section 45(5)

Land Acquisition Act. The assessee responded vide letter (copy at pages 3-58 of Paper Book) that the assessee received enhanced compensation on compulsory acquisition of his agricultural land by Haryana Govt. of Rs. 6,86,17,767/- which included interest under section 28 of Land Acquisition ... year of receipt as per section 45(5) of the Act. However, in the case of an individual or HUF such capital gain from compulsory acquisition of agricultural land being capital asset is exempt from tax under section 10(37) of the Act. 6.4 The Ld. AR pointed