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2014 (6) TMI 609 - AT - Income TaxChargeability of interest u/s 201(1) of the Act - Non-deduction of TDS u/s 194LA of the Act – Structural component of land compensation paid – Held that:- Assessee has deducted tax on the land portion of the compensation paid to the land owners - If the property was not acquired compulsorily and the order of the CIT(A) in earlier year is applicable as contended by the assessee, it is not understandable why assessee has to deduct tax on the land compensation part alone, as the provisions of section 146 are applicable for both land portion as well as structure portion - Assessee having deducted tax on the compensation paid on land portion, it is not correct to contend that structure portion is not acquired and therefore, TDS provisions are not applicable - whether assessee pays the compensation for demolition of the existing structure or acquires and later demolishes for the purpose of road, the facts are similar so long as the provisions of Land Acquisition Act were invoked for acquiring the property and the Land Acquisition Officer determines the compensation paid for acquiring the property. Both the land portion as well as structure portion acquired by the assessee falls under the word "any immovable property" as defined in section 194LA and to the extent of property acquired under Land Acquisition Act, the assessee is covered by provisions of section 194LA of the Act - to the extent of land and structures acquired through mutual negotiations u/s 146 of GHMC Act, the provisions are not applicable to the acquisition of property which is not compulsory - only in case where there is delay from date of TDS to the date of payment of tax by the persons, interest u/s 201(1A) can be levied - The aspects also required to be examined in detail item-wise and then only AO can raise the demand either u/s 201(1) or 201(1A) – thus, the order of the CIT(A) is set aside and the matter is remitted back to the AO for fresh adjudication – Decided in favour of Assessee.
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