Delhi High Court to Review Taxation of Land Compensation Interest
The Delhi High Court will assess the constitutionality of a tax on interest from land compensation, following a plea that claims the tax is unjust. The petitioner argues that such interest should be exempt, as it forms an integral part of land compensation, raising issues of legality and constitutional rights.
- Country:
- India
An important case concerning taxation on land compensation interest is heading to the Delhi High Court. The court is set to evaluate the constitutional validity of Section 56(2)(viii) of the Income Tax Act, 1961. This law imposes taxation on interest acquired from enhanced compensation due to compulsory land acquisition.
A Division Bench consisting of Justice V Kameswar Rao and Justice Vinod Kumar decided the case should be heard on November 24, regarding its constitutional standings. The plea, fronted by Suresh Kumar, a farmer from Gurugram, contends that this interest is part of the tax-exempt compensation under relevant acts.
The petitioner, through advocates Tripurari Ray and Atul Wadera, asserts that the imposition is unconstitutional, breaching rights to equality and livelihood. Previous similar petitions were dismissed on procedural grounds, but this case has arisen from recent orders, prompting a fresh constitutional challenge.
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Delhi HC to Review Taxation on Land Acquisition Interest
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