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Standing crop compensation during land acquisition by nhai project

12 December 2019

as per horticulture department 700plant/ hectare are recommended while assessee has claimed 1700 plant per hectre and received compensation for standing crop now the case is selected for scrutiny and as per assessee govt authority has given claim for 1700plant while ao is eager to made addition on this issue. plant are pomegranate
how to convince the ao

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4 Replies

Kapadia Pravin (17259 Points)
Replied 14 December 2019

Such compensation by NHAI for standing crop loss to the farmer is in the form of Agricultural income and tax exempt.

You explain to the AO with NHAI letters and cheque payments by NHAI.

Can you say on which ground AO is not convinced ?

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ajeet singh (1392 Points)
Replied 14 December 2019

Number of plant 1700 where the ao is not convinced.

Kapadia Pravin (17259 Points)
Replied 15 December 2019

There is a issue between 700 plants an 1700 plants. Horticulture department 700 plants okayed but you claimed 1700 plants.

The compensation claimed is on higher plants which may be later noticed by NHAI you may end up paying up excessive amount of compensation.

The IT department to the extent of excess compensation asking for supportings and you are bound to furnish such and convince AO.

AO may pass an order much to your dismay. And in that case you have to seek appeal route.

NHAI may also face audit enquiry for paying higher than recommended by horticulture department.