Land acquisition compensation exemption under Section 96 barred income tax and stamp duty deductions where Section 46 did not apply.

Compensation awarded under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 is exempt from income tax and stamp duty under Section 96, and that exemption operates fully unless the matter falls within the Section 46 exception. As Section 46 was not applicable on the facts, income tax and stamp duty could not be deducted from the compensation payable. The challenge to the writ relief therefore failed, consistent with the prior Division Bench interpretation of the same statutory question.

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Issues: Whether income tax and stamp duty could be deducted from compensation awarded under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013.

Analysis: Section 96 of the Act, 2013 provides that no income tax or stamp duty shall be levied on any award or agreement made under the Act, except in cases falling under Section 46. Since Section 46 was not applicable on the facts, the statutory exemption operated fully. The prior decision of the Division Bench on the same question supported the same interpretation.

Conclusion: Income tax and stamp duty were not deductible from the compensation payable under the Act, 2013, and the challenge to the writ relief failed.

Ratio Decidendi: Compensation awarded under the Act, 2013 is exempt from income tax and stamp duty under Section 96, unless the case falls within the exception carved out by Section 46.

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