TaxTMI 
TaxTMI 
2023 (6) TMI 622
X X X X Extracts X X X X
X X X X Extracts X X X X
....d Prl. District and Sessions Judge, Raichur, vide Annexure-J, in the interest of justice and equity. b. Issue such other writ or order or direction as this Hon'ble Court deems just and proper in circumstances of the case and allow this Writ Petition, in the interest of justice and equity." 3. The petitioner claims to be the owner of the land in Sy.No.152/*B measuring 8 acres situated at Chikkaberagi village, Sindhanur Taluk, Raichur District. The said land was proposed to be acquired by the respondent No. 2 by issuing a notification under Section 4(1) of the Land Acquisition Act on 05.12.2011. 4. Out of 8 acres of land, the possession of six acres was taken over prior to such notification for construction of percolation tank. Si....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ount of compensation is taxable or not and what is the percentage of Tax to be Deducted at Source on the compensation amount. 8. Shockingly, the Special Land Acquisition Officer (for short hereinafter referred to as 'SLAO') furnished the information stating that in terms of Section 194LA of Income Tax Act, 1961 (for short, hereinafter referred to as 'IT Act'), 10% would be deductible on interest on the compensation, in the event of PAN card details are furnished and in case PAN Card details are not furnished 20% would have to be deducted. 9. The Income Tax Ward Officer, Raichur replied to the letter of the First Additional District Judge, Raichur by extracting Section 194LA of the Act without replying to the queries raised by the Court. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....that the exemption under Section 194LA of the Income Tax Act is only as regards agricultural land and in the event of non-agricultural land and or buildings are acquired and compensation paid, the same would attract deduction of tax at source. 14. Heard Sri Mahantesh Patil, learned counsel for the petitioner, Sri Shivakumar R. Tengli, learned Additional Government Advocate for respondents and perused the records. 15. The Short point that would arise for consideration in the present matter is whether tax is required to be deducted at source on compensation amount paid on account of acquisition of land? 16. Section 194LA of the Income Tax Act, 1961, is reproduced hereunder for easy reference. '194LA. Payment of compensation on acquisition ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ivalent to 10% as income tax and deposit the same with the concerned authority to the account of the assessee. 18. The second proviso clearly makes out an exemption or exception as regards payment made in respect of award or agreement which has been exempted from levying of income tax. The proviso does not make any difference between agricultural or non-agricultural land. The exemption in terms of second proviso applies in its entirety when the land has been acquired and compensation is covered under Section 96 of the Act of 2013. 19. Section 96 of the Act of 2013 reads as under: "Section 96: No income tax or stamp duty shall be levied on any award or agreement made under this Act, except under section 46 and no person claiming under an....
X X X X Extracts X X X X
X X X X Extracts X X X X
....be permitted if rehabilitation and resettlement is not complied with in full. (5) Any purchase of land by a person other than specified persons without complying with the provisions of Rehabilitation and Resettlement Scheme shall be void ab initio: Provided that the appropriate Government may provide for rehabilitation and resettlement provisions on sale or purchase of land in its State and shall also fix the limits or ceiling for the said purpose. (6) If any land has been purchased through private negotiations by a person on or after the 5th day of September, 2011, which is more than such limits referred to in sub-section (1) and, if the same land is acquired within three years from the date of commencement of this Act, then, fort....