Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2017 (7) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (7) TMI 1278 - HC - Income TaxRefund of TDS in respect of the amount received by them on account of interest awarded under Section 28 of the Land Acquisition Act - acquisition of the agricultural land - Held that:- The TDS is provisional collection of tax by the revenue and is always subject to final determination at the time of filing of the return. The petitioners had received the amount of enhanced compensation and interest thereon. A perusal of Annexures P-3 and P-4 appended by the petitioners clearly shows that tax has been deducted on the element of interest on enhanced compensation and, therefore, would fall under Section 194A of the Act which relates to interest other than "interest on securities". Examining the issue of taxability of interest under Section 28 of the Act, in THE COMMISSIONER OF INCOME TAX, FARIDABAD VERSUS BIR SINGH (HUF), BALLABGARH [2010 (10) TMI 581 - PUNJAB & HARYANA HIGH COURT], it was held by the Division Bench of this Court that the interest awarded by court on enhanced compensation under Section 28 of the Act was chargeable to tax as income from other sources in the year of receipt. The tax at source has been rightly deducted and the petitioners can claim the refund, if any, admissible to them by filing the income tax returns in accordance with law - Petition dismissed.
|