Exemption on the Amount Received by the Owners of Agricultural Lands from the Land Tenure Administration

February 5, 1960 BIR RULING NO. 033-60 Mr. Cecilio L. Mendoza Certified Public Accountant 1109 P. Guevarra St. M a n i l a S i r : With reference to your letters dated January 26, and February 4, 1960, I have the honor to inform you that the total amount received by the owners of agricultural lands from the Land Tenure Administration representing the purchase price, whether through negotiation or expropriation, is exempt from the income tax pursuant to Section 22 of Republic Act No. 1400, otherwise known as the Land Reform Act of 1955. (B.I.R. Ruling No. 675, S. of 1958) Accordingly, the total amount of P193,090.00 paid by the Land Tenure Administration to your client, Mr. Clemente G. Reyes, in 1959 as full payment of his expropriated real property located at Maysilo, Malabon, Rizal, as per the decision of the Court of First Instance of Rizal in Civil No. 964 dated August 31, 1959, is exempt from the income tax. cdll Very truly yours, MELECIO R. DOMINGO Commissioner of Internal Revenue