TaxTMI 
TaxTMI 
TaxTMI 
2022 (11) TMI 1131
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..../-. Assessee during the year also sold agriculture land situated village Chikan was (Hisar for amounting to Rs. 60,00,000/- at village Agroha (Hisar amounting to Rs. 22,50,000/- and at village Bhadvin (Sirsa) for amounting to Rs. 1,13,70,000/- during the year. Assessee has also received land compensation of Rs. 50168465/- on compulsory acquisition and interest of Rs. 11899848/- thereon from LAO, HUDA. The assessee claimed the interest exempt u/s 10(37). Statutory notices were issued. The Ld. AO in this case made addition keeping in view of the decision of Hon"ble Punjab and Haryana High court in the case of Manjeet Singh (HUF) through Karta Manjeet Singh. Further, the assessee has credited the capital account with the amount of Rs. 712938/- on account of agriculture Royalty received by the assessee from Haryana govt, but the same has not been offered for taxation. The Ld. AO made addition on the same as there is no provision under the Income Tax Act where royalty paid to Land owner received from Haryana Govt. has been exempt from taxation. The Ld CIT()A partly allowed the appeal of the assessee upholding the addition on account of royalty of Rs. 7,12,938/- while dealing with the is....
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....09.11.2020-22 (page NO. 7 of the paper book) that no tax deduction certificate is required to be issued in regard to annuity payment. 6. On the other hand the ld DR submitted that as the annuity is not part of award it cannot be equated with compensation or interest upon compensation and that ld Tax Authorities below have rightly made the addition as there is no provision under the Act where such payment are exempted from taxation. 7. On giving thoughtful consideration to the matter on record the bench is of considered opinion that though under the Land Acquisition Act 1894 or the Income Tax Act 1961 there are no specific provision with regard to exemption income arising equities payment to land owners whose land has been acquired. 8. However, the notification dated 09.11.2010 of the Govt of Haryana under which this annuity has been granted is provides that annuity is paid by the Govt. of Haryana to a land owner whose land is acquired by Govt. under statute and that the annuity payment is in the nature of social security and benefit scheme is a part of overall R&R policy of the Govt. This R&R (Rehabilitation and resettlement) policy of the Govt of Haryana has its source under th....
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....lities which are affected or likely to be affected, where resettlement of affected families is involved; and (e) details of any common property resources being acquired. (2) The Administrator shall, based on the survey and census under subsection (1), prepare a draft Rehabilitation and Resettlement Scheme, as prescribed which shall include particulars of the rehabilitation and resettlement entitlements of each land owner and landless whose livelihoods are primarily dependent on the lands being acquired and where resettlement of affected families is involved- (i) a list of Government buildings to be provided in the Resettlement Area; (ii) details of the public amenities and infrastructural facilities which are to be provided in the Resettlement Area. (3) The draft Rehabilitation and Resettlement scheme referred to in subsection (2) shall include time limit for implementing Rehabilitation and Resettlement Scheme. (4) The draft Rehabilitation and Resettlement scheme referred to in subsection (2) shall be made known locally by wide publicity in the affected area and discussed in the concerned Gram Sabhas or Municipalities. (5) A public hearing shall be conducted in such m....
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....duly authorised to certify its orders and different declarations may be made from time to time in respect of different parcels of any land covered by the same preliminary notification irrespective of whether one report or different reports has or have been made (wherever required). (2) The Collector shall publish a summary of the Rehabilitation and Resettlement Scheme along with declaration referred to in sub-section (1): Provided that no declaration under this sub-section shall be made unless the summary of the Rehabilitation and Resettlement Scheme is published along with such declaration: Provided further that no declaration under this sub-section shall be made unless the Requiring Body deposits an amount, in full or part, as may be prescribed by the appropriate Government toward the cost of acquisition of the land: Provided also that the Requiring Body shall deposit the amount promptly so as to enable the appropriate Government to publish the declaration within a period of twelve months from the date of the publication of preliminary notification under section 11. (3) In projects where land is acquired in stages, the application for acquisition itself can specify diff....
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....tion 20, and into the value of the land at the date of the publication of the notification, and into the respective interests of the persons claiming the compensation and rehabilitation and resettlement, shall make an award under his hand of- (a) the true area of the land; (b) the compensation as determined under section 27 along with Rehabilitation and Resettlement Award as determined under section 31 and which in his opinion should be allowed for the land; and (c) the apportionment of the said compensation among all the persons known or believed to be interested in the land, or whom, or of whose claims, he has information, whether or not they have respectively appeared before him. Section 28. Parameters to be considered by Collector in determination of award.-In determining the amount of compensation to be awarded for land acquired under this Act, the Collector shall take into consideration- firstly, the market value as determined under section 26 and the award amount in accordance with the First and Second Schedules; secondly, the damage sustained by the person interested, by reason of the taking of any standing crops and trees which may be on the land at the time of the....
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....the same shall be indicated as not applicable: Provided further that the appropriate Government may, by notification increase the rate of rehabilitation and resettlement amount payable to the affected families, taking into account the rise in the price index. Section 69. Determination of award by authority.-(1) In determining the amount of compensation to be awarded for land acquired including the Rehabilitation and Resettlement entitlements, the Authority shall take into consideration whether the Collector has followed the parameters set out under section 26 to section 30 and the provisions under Chapter V of this Act.‖ 11. Further Section 96 of R&R Act, inter alia provides that income tax shall not levied on any award or agreement under R&R Act and the CBDT Circular No. 36 of 2016 dated 25.10.2016 as provided in paper book page No. 18 of ld AR, directs that:- "The matter has been examined by the Board and it is hereby clarified that compensation received in respect of award or agreement which has been exempted from levy of Income-tax vide section 96 of the RFCTLARR Act shall also not be taxable under the provisions of Income Tax Act, 1961 even if there is no specific p....