Thursday, November 13, 2014

Section 54H would be extended to entire amount of compensation as enhanced by Court as compensation

IT: Where assessee was awarded by enhanced compensation, benefit under section 54H would be extended to entire amount of compensation as enhanced by Court as compensation connotes not only market value but also statutory benefits provided under Act
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[2014] 50 taxmann.com 108 (Andhra Pradesh)
HIGH COURT OF ANDHRA PRADESH
Chakiri Ashok Kumar
v.
Income-tax Officer*
L. NARASIMHA REDDY AND CHALLA KODANDA RAM, JJ.
I.T.T.A. NO. 47 OF 2002†
JULY  23, 2014
Section 54H of the Income-tax Act, 1961 - Capital gains Extension of time for acquiring new asset or depositing or investing amount of capital gains (Land acquisition compensation) - Assessee's land was acquired and Land Acquisition Officer fixed market value of said land - On appeal, market value of said land was enhanced and statutory benefits such as solatium, additional market value were also awarded - Whether compensation connotes not only market value but also other components such as solatium and additional market value provided under Act - Held, yes - Whether therefore, benefit of section 54H should be extended to entire amount of compensation as enhanced by Court and would not only be restricted to amount awarded by Land Acquisition Officer - Held, yes [Paras 9 and 10] [In favour of assessee]

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