2019 (5) TMI 1279

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....a Priya & Mr. Tavinder Sidhu, Advocates for Respondent/M.V.Kivi Law Firm O R D E R 1. In both these petitions the common question that arises is whether compensation payable for acquisition of land under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (hereafter the '2013 Act') is amenable to income tax and if so whether at the time of payment of compensation there is a requirement for deduction of Tax at Source (TDS)? 2. Section 96 of the 2013 Act reads as under:- "Exemption from income-tax, stamp duty and fees.- No incometax or stamp duty shall be levied on any award or agreement made under this Act, except under section 46 and no person claiming under any su....

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....under section 46) under the RFCTLARR Act. Therefore, compensation received for compulsory acquisition of land under the RFCTLARR Act (except those made under section 46 of RFCTLARR Act), is exempted from the levy of income-tax. 3. As no distinction has been made between compensation received for compulsory acquisition of agricultural land and non-agricultural land in the matter of providing exemption from income-tax under the RFCTLARR Act, the exemption provided under section 96 of the RFCTLARR Act is wider in scope than the tax-exemption provided under the existing provisions of Income-tax Act, 1961. This has created uncertainty in the matter of taxability of compensation received on compulsory acquisition of land, especially thos....

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....(Land Acquisition)), Mr. Zoheb Hossain, learned senior standing counsel appearing for the Income Tax Department, confirms that the TDS amount deducted by the Competent Authority Land Acquisition ('CALA') from the compensation paid to the Petitioner has been deposited with the Income Tax Department. Accordingly, a direction is issued to the Income Tax Department to refund the said sum deposited with TDS to the Petitioner not later than 31st May, 2019 failing which simple interest @ 6% p.a. will be paid on the said sum for the period of delay. 9. As regards Writ Petition (C) No. 13960/2018 (M/s. Prem Sukh Bothra (HUF) v. Office of the Competent Authority (Land Acquisition) under the National Highways Act, 1956) the stand of the NHAI is tha....