TaxTMI 
TaxTMI 
2022 (6) TMI 525
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...., J.) 1. Rule. Rule made returnable forthwith by consent of the parties. 2. The petitioner assails an action on the part of the respondent No.1 in deducting income tax at source from the compensation paid to the petitioner by the respondent No.1 for the acquisition of his land. 3. The petitioner claims to be the owner of certain plots of land situated at Bhiwandi, Thane. The respondent No.1 acquired the land of the petitioner purportedly under an agreement. The respondent No.1 deducted income tax at source from the compensation paid to the petitioner. The same appears to have been deducted on 23rd October 2019. On or about 8th May 2020, a supplementary deed was entered into between the petitioner and the respondent under which some addit....
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.... through an agreement. The learned Counsel to buttress his submission relied upon the judgment of the Apex Court in the case of Balkrishnan Versus Union of India (2017) 80 taxmann.com 84 (SC). Further reliance is placed on the judgment of the Division Bench of Kerala High Court in the case of K. Sreekumar Versus District Collector Writ Application No. 1422 of 2015, dt. 18th January 2018. Reliance is also placed upon the CBDT Circular dated 25th October 2016 to contend that the Central Board has also clarified that the compensation received in respect of award or agreement is exempted from levying of income tax vide Section 96 of the Act, 2013 and shall not be taxable under the provisions of the Income Tax Act, 1961 (hereinafter referred to ....
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.... Income Tax Rules. The deducted tax has already been deposited in the Income Tax Department. The TDS certificate [Form 16(b)] is also provided to the petitioner. 8. The learned Counsel for respondent Nos.2 and 3 also submits that Section 96 of the Act, 2013 is not applicable to the acquisition under direct purchase. Section 96 would apply if the acquisition is through declaration of an award by the Collector under Section 23 or 23A of the act, 2013 and not by an execution of sale deed. The petitioner and respondent No.1 have entered into an agreement by executing the sale deed. It is further submitted that a classification of the two groups of people has been made viz. the class whose land is acquired by direct purchase through direct nego....
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....e compensation will be fixed by giving 25% enhanced amount of the total compensation being calculated for the land concerned as per the provisions of Sections 26 to 33 and Schedule-I of the Act, 2013. Undisputedly, the land was acquired for a public project. Policy decision has been taken by the State Government under its Government Resolution dated 12th May 2015 for acquiring the property by private negotiations and purchases for implementation of public project. Methodology is also provided. The computation of compensation has to be under the provisions of the Act, 2013. The same is introduced to expedite the acquisition for the implementation of the project. If the parties would not agree with the negotiations and direct purchase, then t....
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....f Commissioner, Income Tax Department Writ Petition (C) No. 3227 of 2020 dt. 18th February 2020 observed that the language of Section 96 of the Act, 2013 does not leave any doubt in the mind that if the land either acquired or the result of an agreement, it could not fall within the mischief of IT Act, in other words, exemption is liable to be granted. 12. The Central Board of Direct Taxes under Circular No.36 of 2016 dated 25th October 2016 also has clarified that "the matter has been examined by the board and it is hereafter clarified that compensation received in respect of award or agreement which has been exempted from levy of income tax vide Section 96 of the Act, 2013 shall also not be taxable under the provisions of the IT Act.". I....
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....) on the basis of information relating to deduction of tax furnished by the deductor to the Income Tax Authority. Rule 37BA (3) (i) of the Rules, 1962 further provides that the credit for tax deducted at source and paid to the Central Government shall be given for the assessment year for which such income is assessable. 14. Further, proviso to Section 200(3) of the IT Act provides that the person may also deliver to the prescribed Authority the correction statement for rectification of any mistake in the statement delivered under the said subsection in such form and verified in such manner as may be verified by the Authority. Clause (d) of Sub-section (1) of Section 200A of the IT Act inter alia provides for determination of the sum payabl....