2015 (10) TMI 540

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....with the objective of building a metro rail system for the city of Kochi. The grievance of the petitioner in the writ petition is with regard to its liability to deduct tax at source from payments of compensation amounts to the persons from whom land was acquired in connection with the project. It is the case of the petitioner that, as per the provisions of Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (hereinafter referred to as the "2013 Act"), and in particular Section 96 therein, there is an exemption envisaged from income tax in respect of amounts by way of compensation received by landowners. It is his contention therefore, that in the light of the said provision under the 2....

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....fidavit has been filed by the 4th respondent, wherein the averments in the writ petition are denied. It is also stated, relying on the decision of this Court in 2008 (4) KLT 782 that in cases where there is no compulsory acquisition of land under the Land Acquisition Act, 1894, even if the provision of Section 194LA are not applicable, the provisions of Section 194IA of the Income Tax Act would apply to govern deduction of tax at source from payments made to the persons from whom lands were acquired. It is the case of the respondents that, in the instant case there was no acquisition in terms of the Land Acquisition Act and therefore, Section 96 of the 2013 Act, on which the petitioner places reliance may not strictly apply. 3. I have he....