TaxTMI 
TaxTMI 
2025 (8) TMI 1895
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..... The petitioner-The Defense Estate Officer, Karnataka and Goa Circle in W.P.No.102891/2025 is before this Court seeking for the following reliefs: a. Issue a writ, order or Direction in the nature of certiorari by quashing the order dated 29.08.2022 passed in Execution Case No.79/2018 by the Hon'ble Court of Additional Senior Civil Judge and JMFC, Karwar vide Annexure-D, in the interest of justice and equity. b. Pass such other order or orders that are deemed fit under the facts and circumstances of the case. 3. The petitioner-The Defense Estate Officer, Karnataka and Goa Circle in W.P.No.102884/2025 is before this Court seeking for the following reliefs: a. Issue a writ, order or Direction in the nature of certiorari by quashing the order dated 02.09.2022 passed in Execution Case No.35/2020 by the Hon'ble Court of Additional Senior Civil Judge and JMFC, Karwar vide Annexure-E, in the interest of justice and equity. b. Pass such other order or orders that are deemed fit under the facts and circumstances of the case. 4. Proceedings having been initiated by the land loser under Section 28 of Land Acquisition Act, 1894 (for short here....
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....e has been withdrawn on account of the appeal preferred. 10. The total amount which was payable as on the date of filing of Execution petition was stated to be Rs.1,37,28,130/- and the interest payable on the said amount until 18.04.2008 was calculated to be Rs.4,44,92,257/-. The petitioner made payment for sum of Rs.1,33,71,445/- on 28.02.2011 leaving a balance payable of Rs.3,11,20,812/- with furthermore interest at the rate of 15% which as on 18.07.2017 amounted to Rs.1,90,47,600/-. The total interest payable coming up to Rs.5,01,68,412/- an amount of Rs.4,47,54,965/- was paid in the year 2017-18 leaving a further balance amount of Rs.54,13,447/- which accrued further interest of Rs.20,59,200/- totaling up to Rs.74,72,647/- and along with the award amount of Rs.1,37,28,130/-, the balance amount as on the date of filing of the execution petition was stated to be Rs.2,12,00,777/-. 11. Though the Execution Petition is filed in the year 2018 the payments were not made and the matter continued to languish. Memos were also filed by the decree holders in the Execution Petition clearly stating the amount which are due from time to time. The last memo which had been filed was on 10....
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....BDT [(2020) 423 ITR 13] more particularly para Nos.2 and 13 thereof, which are reproduced hereunder for easy reference; 2. The issue involved in narrow circumference is "whether after the insertion of sections 56(2)(viii) and 57(iv) of the Act, with effect from April 1, 2010, can the assessee claim that interest received under section 28 of the Land Acquisition Act, 1894 (for short, "the 1894 Act") will partake the character of compensation and would fall under the head 'Capital gains' and not 'Income from other sources' ?" 13. In view of the above, it is held that the interest received on compensation or enhanced compensation is to be treated as "income from other sources" and not under the head "capital gains". 13.6. By relying on the same, he again submits that interest received in compensation or enhanced compensation is to be treated as income from other sources. 13.7. He relies upon the decision of this Court in Guru Rao v. State of Karnataka [ILR 2012 Karn. 6485] more particularly para 10 and 14 thereof, which are reproduced hereunder for easy reference; 10. The `interest' in the context means, a consideration ....
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....uality of interest. Lord Wright observed: "The general idea is that he is entitled to compensation for the deprivation. From that point of view it would seem immaterial whether the money was due to him under a contract express or implied, or a statute, or whether the money was due for any other reason in law. In either case the money was due to him and was not paid or, in other words, was withheld from him by the debtor after the time when payment should have been made, in breach of his legal rights, and interest was a compensation, whether the compensation was liquidated under an agreement or statute, as for instance under Section 57 of the Bills of Exchange Act, 1882, or was unliquidated and claimable under the Act as in the present case. The essential quality of the claim for compensation is the same, and the compensation is properly described as interest." This passage indicates that interest, whether it is statutory or contractual, represents the profit the creditor might have made if he had the use of the money or the loss he suffered because he had not that use. It is something in addition to the capital amount, though it arises out of it. Under Section 34 ....
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....ion 18, for " six per centum" (w.e.f. 24.9.1984).] per annum from the date on which he took possession of the land to the date of payment of such excess into Court: [Provided that the award of the Court may also direct that where such excess or any part thereof is paid into Court after the date of expiry of a period of one year from the date on which possession is taken, interest at the rate of fifteen per centum per annum shall be payable from the date of expiry of the said period of one year on the amount of such excess or part thereof which has not been paid into Court before the date of such expiry.] [Inserted by Act 68 of 1984, Section 18 (w.e.f. 24.9.1984).] [28-A. Re-determination of the amount of compensation on the basis of the award of the Court [Inserted by Act 68 of 1984, Section 19 (w.e.f. 24.9.1984).] (1) Where in an award under this Part, the Court allows to the applicant any amount of compensation in excess of the amount awarded by the Collector under section 11, the persons interested in all the other land covered by the same notification under section 4, sub-section (1) and who are also aggrieved by the award of the Collector may, notwit....
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....r annum from the time of so taking possession until it shall have been so paid or deposited: [Provided that if such compensation or any part thereof is not paid or deposited within a period of one year from the date on which possession is taken, interest at the rate of fifteen per centum per annum shall be payable from the date of expiry of the said period of one year on the amount of compensation or part thereof which has not been paid or deposited before the date of such expiry.] [Inserted by Act 68 of 1984, Section 20 (w.e.f. 24.9.1984).] 20. A perusal of Section 34 indicates that it relates to amount of compensation which is not paid or deposited on or before taking possession of the land, the collector shall pay the amount awarded with interest thereon at the rate of 9% per annum from the date of so taking possession until it shall have been so paid or deposited. 21. The distinction between Section 28 and Section 34 is the ex-facie evident. Section 34 would arise in a situation where there is no reference which has been made and on account of non-payment of compensation interest would be liable to be made payment of by the acquiring authority. Whereas Section 28....
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....t and therefore is a revenue receipt liable to tax under the Income Tax Act". 26. Thus, the finding rendered by the full Bench of the Hon'ble Apex Court was only with reference to interest under Section 34 Act of 1984 and not under Section 28 of the Act 1984. 27. This aspect which has been considered by the Hon'ble Punjab and Haryana High Court in Mahender Pal Narang's case and a co-ordinate Bench of this Court in Guru Rao's case relied upon by the counsel for the petitioner. 28. Wherein reliance has been placed by both the Courts on Shamlal Narula's case. Shamlal Narula's case dealing with only interest levied in terms Section 34 will not in my considered opinion apply to interest levied in terms of Section 28 of the Act of 1894. 29. Furthermore, the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 in Section 96 of the said Act, exempts income tax, stamp duty and fees on any award or agreement made under the Act except under Section 46. 30. Section 46 deals with provisions relating to rehabilitation and resettlement to apply in cases of certain persons other than the specified persons.....