Question ID : 36942

Compensation received by PVT Ltd. compnay on compulsory acquisition of its office industrial land by

Industrial land owned by Pvt Ltd company has been compulsorily acquired by NHAI. Pvt. Ltd. company can claim exemption of this amount by vide circular no.36/2016 of CBDT dated 25/10/2016 ?

Since Circular No. 36/2016 speaks of increasing the scope of exemption u/s 10(37), (scope in form type of land exempt when compulsorily acquired in terms of Section 46 of RFCTLAAR Act). Exemption is specifically to Individual and HUF, therefore in my opinion an assessee being a company is not eligible for exemption on the basis of Circular No. 36/2016.