2015 (7) TMI 1356 - HC - Income Tax

Assessee taking a contention before the CIT (Appeals) - HELD THAT - Assessee received enhanced compensation in view of an order under Section 18 of the Land Acquisition Act, 1881. However, admittedly the land in question was agricultural land. That has not been challenged. The compensation is, therefore, not liable to be taxed. Thus, on merits, there is no case. Only issue is whether such a contention could have been taken for the first time before the CIT (Appeals). It does not appear from the order that this technical ground was pressed before the Tribunal, though it has been raised in the memo of appeal. There has been no application by the appellant for modification of the order before the Tribunal either. Prima-facie, at least there is nothing that prevented the assessee from taking such a contention before the CIT (Appeals).

Summary

The High Court dismissed the appeal regarding taxation of enhanced compensation for agricultural land under the Land Acquisition Act, stating that the compensation is not taxable. The court found that the assessee could have raised the contention before the CIT (Appeals) and therefore dismissed the appeal.