2015 (12) TMI 111

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.... as well as Circular dated 13.4.2011, Annexure P.4. Further prayer has been made for directing the respondents to refund the amount of tax deducted at source with interest. 2. A few facts relevant for the decision of the controversy involved as narrated in the petition may be noticed. The petitioners were owners of agricultural land situated at Village Wazirabad, Tehsil and District Gurgaon. It was acquired by the State of Haryana for a public purpose i.e. for residential, commercial and institution of Sector 57, Gurgaon vide notification dated 24.8.2000 under Section 4 of the Land Acquisition Act, 1894 (in short, "the Act") followed by notification under section 6 of the Act on 21.7.2013. Award was passed on 21.7.2014. Thereafter, the pet....

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.... by the department in lieu of TDS but they did not pay any heed. Hence the instant writ petition. 3. A written statement has been filed on behalf of respondent No.4 - Union of India through Commissioner of Income Tax (TDS) II, Chandigarh wherein it has been inter alia stated that the interest on enhanced compensation being revenue receipt and exigible to tax in the year of receipt in view of the amendment to sub section (2) of Section 56, clause (b) of Section 145A and Section 57(iv) by the Finance (No.2) Act 2009 w.e.f 1.4.2010 applicable to the assessment year 2013-14 and in view of the law laid down by this Court in CIT, Faridabad vs. Bir Singh, ITA No.209 of 2004 and CIT, Panchkula vs. Prem Singh decided on 16.12.2010. Thus, in view of....

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....fect:- "(viii) income by way of interest received on compensation or on enhanced compensation referred to clause (b) of section 145A." Further amendment was carried out under Section 145A by inserting clause (b) by Finance Act, 2009 w.e.f 1.4.2010 to the following effect:- "(b) interest received by an assessee on compensation or enhanced compensation, as the case may be, shall be deemed to be the income of the year in which it is received. In view of the aforesaid amendments, the interest component on the amount of compensation or enhanced compensation being revenue receipt was exigible to tax in the year of receipt. On these premises, prayer for dismissal of the petition has been made. 4. After hearing learned counsel for the parties,....