https://www.taxtmi.com/caselaws?id=299311 Section 194LA applies only where payment is made as compensation or enhanced compensation on account of compulsory acquisition. Where land is transferred to the Government through negotiated settlement and sale deeds, the payment is consideration for purchase, not compensation for compulsory acquisition, so the statutory condition for tax deduction at source is not met. The provision, being a taxing provision, must be strictly construed; accordingly, tax was not deductible at source on such payments. This principle confines Section 194LA to compulsory acquisition cases and excludes agreed sales despite earlier acquisition proceedings. en-us Thu, 08 Jan 2009 00:00:00 +0530 Thu, 09 Dec 2021 17:29:58 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=299311 Section 194LA applies only where payment is made as compensation or enhanced compensation on account of compulsory acquisition. Where land is transferred to the Government through negotiated settlement and sale deeds, the payment is consideration for purchase, not compensation for compulsory acquisition, so the statutory condition for tax deduction at source is not met. The provision, being a taxing provision, must be strictly construed; accordingly, tax was not deductible at source on such payments. This principle confines Section 194LA to compulsory acquisition cases and excludes agreed sales despite earlier acquisition proceedings. Case-Laws Income Tax Thu, 08 Jan 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=299311