COMMISSIONER OF INCOME TAX vs M/S. ALL INDIA TEA AND TRADING CO. LTD.

The Supreme Court ruled that compensation received under the Assam Land (Requisition and Acquisition) Act, 1948, specifically under Section 3(1) and Section 7, is exempt from income tax as it constitutes agricultural income. The Court upheld the findings of the Appellate Assistant Commissioner and the Tribunal that the land was used for agricultural purposes both before and after requisition. Consequently, the compensation amount of Rs. 1,24,638 was deemed not liable to tax, affirming the High Court's decision.