Compensation u/s 28 of Land Acquisition Act is Taxable u/s 56(2)(viii) r.w.s 145B(1) of Income Tax Act:

The Income Tax Appellate Tribunal (ITAT) has ruled that compensation received under Section 28 of the Land Acquisition Act is taxable under Section 56(2)(viii) read with Section 145B(1) of the Income Tax Act. The case involved the taxation of compensation awarded for land acquisition, where the ITAT held that such compensation is considered income and thus subject to tax. The ruling provides clarity on the tax treatment of land acquisition compensation, confirming that it is taxable income. This decision has significant implications for individuals receiving compensation for land acquisition, as it establishes a clear precedent for the taxation of such payments under the Income Tax Act.