TaxTMI 
TaxTMI 
2013 (10) TMI 786
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....m Singh and others v. Land Acquisition Collector and others reported in (1997)10 SCC 243 in paragraph-10 has held as under: "10.But the question is whether the interest on delayed payment on the acquisition of the immovable property under the Acquisition Act would not be exigible to income tax? It is seen that this Court has consistently taken the view that it is a revenue receipt. The amended definition of "interest" was not intended to exclude the revenue receipt of interest on delayed payment of compensation from taxability. Once it is construed to be a revenue receipt, necessarily, unless there is an exemption under the appropriate provisions of the Act, the revenue receipt is exigible to tax. The amendment is only to bring within its ....
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....aim petition till the date of deposit, (b) thereafter, if the interest for any particular financial year exceeds Rs. 50,000, separately deposit before the Tribunal the amount liable to be deducted at source under the provisions of section 194-A(3)(ix) of the Income Tax Act, 1961. Such amount shall not, however, straightaway be paid over to Income Tax Department, (c) produce before the Claims Tribunal a statement of computation of interest by spreading the amount over the relevant years from the date of claim application till the date of deposit if the interest for any particular financial year exceeds Rs. 50,000 and also request the Tribunal to treat the amount as a separate deposit. II(i) The Tribunal shall take into account the princip....
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....ions." 4. Learned counsel for the petitioner has placed a Circular dated 08.12.2008 on record, and thereafter has held that the TDS can only be deducted after the taxable amount paid to the party to spread over the number of years for which the payment has been made and it has to be calculated accordingly and thereafter only TDS can be made. 5. However, in a Division Bench of this Court in Special Civil Application No. 14317 of 2003, Sagar Harji Naza Deceased Through Heirs v. State of Gujarat and others decided on 30.09.2013 in paragraph-5 has held as under: "This Circular was issued by the State Government in pursuance of the judgments of the Hon'ble Apex Court. However, if the TDS is deducted and it is found that some excess tax has be....