2010 (6) TMI 661

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....land' and is clearly excluded from the provisions of deduction of tax under s. 194LA of the IT Act. The sequence of the events as narrated in the writ petition shows that, the property of the petitioner was acquired in connection with the establishment of 'sub-station for the Power Grid Corporation of India', who is the third respondent herein. The property is situated in Pallikkara village in Ernakulam District. On acquisition of the property pursuant to the notification issued under the relevant provisions of the Land Acquisition Act, the compensation was awarded by the LAO. Being aggrieved of the inadequacy of the quantum, it was caused to be referred under s. 18, pursuant to which the matter was considered by the reference Court and ....

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....s of the petitioner are mainly twofold, firstly that, the income-tax can only be in respect of the interest amount and not on the entire compensation. Since the interest portion has been separately dealt with and given by the third respondent as per Ext. P1, it is not a matter of ambiguity, which ought to have been considered and acted upon without any delay. The next contention is that the property belonging to the petitioner, which was acquired on behalf of the third respondent, is an 'agricultural property' and hence the mandate under s. 194LA of the IT Act is not applicable, by virtue of the exemption provided in the said provision. It is also stated that the term 'agricultural land' is defined under s. 2 (14)(iii)(a) and (b). According....

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....he property as a 'dry land' and also after obtaining the enhanced compensation, the petitioner is now trying to have the benefit of categorizing the land as an 'agricultural land' under s. 2(14)(iii)(a) and (b) of the IT Act which is not correct or proper and it requires to be considered by the appropriate authority, on the basis of the relevant facts, figures and evidence. Considering the rival submissions, this Court finds that the primary question to be considered and dealt with is, whether the property of the petitioner is an 'agricultural land' or not as defined under s. 2(14)(iii)(a) and (b) of the IT Act, so as to avail the exemption provided under s. 194LA of the IT Act. Even though there is no case for the respondents that the prop....