Compensation received from electricity transmission company for installation of High tension line

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This discussion explores whether compensation received from an electricity transmission company for the installation of high-tension lines on agricultural land is subject to income tax. The general consensus is that such compensation is typically treated as agricultural income and therefore exempt from tax. A specific case law, Shri Ishwarbhai Desai Vs The Income Tax Officer, Ward-3(1), Surat, was also referenced as potentially relevant.

Mayur

Mayur (Querist)
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14 May 2025 Is compensation received from electricity transmission company for installation of High tension lines in an agriculture land taxable? According to me it should be a capital receipt and not taxable. Your views with any specific judgement will be highly appreciated.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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14 May 2025 In general, compensation received for the installation of a high-tension line on agricultural land is considered agricultural income and is exempt from income tax.

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Mayur

Mayur (Querist)
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14 May 2025 Thank you sir. I also found one not exect but a similar case law. Shri Ishwarbhai Desai Vs The Income Tax Officer, Ward-3(1), Surat (ITA No. 544/AHD/2010).

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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14 May 2025 You are welcome...
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