TaxTMI 
TaxTMI 
2013 (4) TMI 550
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....6, as the lead case and our decision on this appeal will apply to other assessment years as well. 3. Grievances raised by the appellant are as follows: 1. For that the learned C.I.T(A) was grossly unjustified in confirming the addition made by the assessing officer. Such action of the CIT(A) was arbitrary, opposed to requirement of law and bad in law. 2. For that the authorities below erred in determining the responsibility and authorities of the responsible person in connection with the deduction u/s. 19LA of the Act. 3. For that the authorities below had not properly dealt with the function of the learned Competent Authority in connection with the determination & payment of compensation to the land owners as perprovision of the "The Metro Railway (Construction of Works) Amendment Act, 1987". 4. For that the order of the authorities below in respect of the demand notice are not in accordance with the provision of the Act, invalid and void ab initio. 5. For that order of CIT(A) as well as the assessing officer in imposing of tax of Rs.17,17,....
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....y bound to comply the Competent Authority's order in terms of payment of compensation amount decided by him. Then, it cannot be denied that Metro Railway is paying the amount to the competent authority as per requirement who is actually disbursing the amount as per their Ministry's Act, which is made for the facilitation of departmental activities. On relying upon the clause (3) of the said submission, the Competent Authority is only determining the amount to be paid as compensation and accordingly send the pay order on account of land owner to Central Government in which Metro Railway is allocating the funds as per the budget. So, in the instant case, the Competent Authority is acting as a coordinator who does not fall within the purview of tax deductor as per law and the beneficiary is obviously Metro Railway, Kolkata, which holds actually the title of the land. Moreover, the Competent Authority is doing nothing but facilitating the process of compulsory acquisition of land on behalf of Metro Railway Kolkata. It has been deducted from the above facts and submission that it is Metro Railway who are, according to their budget allocation, paying the amount to Competent Authori....
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....gate amount of such payments to a resident during the financial year does not exceed one hundred thousand rupees. Explanation.-For the purposes of this section,- (i) "agricultural land" means agricultural land in India including land situate in any area referred to in items (a) and (b) of sub-clause (iii) of clause (14) of section 2; (ii) "immovable property" means any land (other than agricultural land) or any building or part of a building. 9. A plain reading of the above legal provision shows that the tax withholding requirements under section 194 LA come into play when a payment is made to a resident "being in the nature of compensation ..... on account of compulsory acquisition, under any law for the time being in force, any immovable property (other than agricultural land)". The crucial point of time when the tax withholding liability is invoked is thus the point of time when payment is made to a resident which is in the nature of compensation for compulsory acquisition of an immoveable property, other than agricultural land. In this light, let us turn to the facts of the present case. 10. In the present case, there is no dispute, as evident from the observatio....
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....ource liability comes into play only when the payments are made by the Competent Authority, Metro Railways, Kolkata to the actual beneficiaries of compensation as it is this amount which can be termed as payment, in the nature of compensation for compulsory acquisition of land under a law in force, to a resident. The authorities below were thus clearly in error in proceeding on the basis that the payments made by Dy FA and CAO Metro Railways, Kolkata, to Competent Authority Metro Railways Kolkata, attracted the tax deduction at source liability under section 194 LA, and that the TDS compliance was required to be made by the Dy FA and CAO, Metro Railways, Kolkata, and not the Competent Authority, Metro Railways, Kolkata. It is, however, altogether a different matter that both the authorities are of Metro Railways Kolkata and since, as stated by the officers of Metro Railways Kolkata present in our court room at the time of hearing, all the establishment and related costs of even the Competent Authority Metro Railways Kolkata, are borne by the Metro Railways Kolkata itself, it would not really make much of any financial difference whether demand under section 201 (1) is raised on the....
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....14): ...................The question, therefore, is whether s. 153(3)(ii) can be invoked. It is not contended on behalf of the assessees that they are not covered by the expression " any person " in s. 153(3)(ii) of the Act. The only contention is that there is no "finding" or "direction" within the meaning of s. 153(3)(ii) of the Act in the order of the Aac in consequence of which or to give effect to which the impugned assessments have been made. The expressions "finding" and "direction" are limited in meaning. A finding given in an appeal, revision or reference arising out of an assessment must be a finding necessary for the disposal of the particular case, that is to say, in respect of the particular assessee and in relation to the particular assessment year. To be a necessary finding, it must be directly involved in the disposal of the case. It is possible in certain cases that in order to render a finding in respect of A, a finding in respect of B may be called for. For instance, where the facts show that the income can belong either to A or B and to no one else, a finding that it belongs to B or does not belong to B would be determinative of the issue whether it can be....