Case Law Analysis
|Income Tax Appellate Tribunal
Interest on Enhanced Compensation for Agricultural Land Exempt Under Section 56(2)(viii) : ITAT Pune
The ITAT Pune has ruled that interest paid on enhanced compensation for compulsorily acquired agricultural land is not taxable under Section 56(2)(viii) of the Income Tax Act, regardless of the jurisdictional boundary of the Bombay High Court. This clarifies a widespread misconception and provides uniform tax relief to landowners across Maharashtra and Goa whose land is acquired under the Land Acquisition Act, ensuring consistency in tax treatment nationwide.