In Brief
This case involved multiple consolidated civil appeals challenging whether compensation paid on agreed terms for land acquisition qualifies for tax exemption under section 10(37) of the Income Tax Act, 1961. The Supreme Court, relying on its earlier decision in Balakrishnan v. Union of India, held that even where compensation is agreed between parties, the acquisition remains compulsory in character, not a voluntary sale. Consequently, the tax exemption under section 10(37) applies; negotiations are limited to the compensation amount only. The Court dismissed all appeals and upheld the High Court's order.
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