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2013 (11) TMI 1651 - HC - Income TaxDisbursement of tax deducted at source (for short `TDS') to the decree-holders - Held that:- Perusal of relevant provisions of Land Acquisition Act and Income Tax Act and law laid down in aforesaid judgments, it is clear that no tax is to be deducted at source from compensation awarded in lieu of acquisition of agricultural land. In respect of 'interest' it has to be seen whether interest is a part of compensation. If answer is in affirmative then tax cannot be deducted at source. If,however, it is for delay in making payment it does not form part of compensation and tax may be deducted at source. Admittedly, in the instant case the land was agricultural land and enhanced compensation and interest was awarded under Section 28. Thus, in view of specific finding of Hon'ble Supreme Court in Ghanshyam's case (2009 (7) TMI 12 - SUPREME COURT) that amount awarded under Section 28 of the Land Acquisition Act is accretion in value of land and interest therein forms part of compensation; income tax cannot be deducted at source since land acquired is agricultural land.
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