Standing crop compensation during land acquisition by nhai project

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 ?

Number of plant 1700 where the ao is not convinced.

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.

As per Horticulture department, its just recommendation, but not rule, and the same being considered by compensating authority.

There is no rule in IT to disallow the compensation issued by any governmental agency, but to assess its tax-ability under IT act.

Go for appeal.