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2019 (11) TMI 1801 - HC - Income TaxAccrual of income - Taxability of compensation received under an Award - HELD THAT:- Section 96 of the Act 30 of 2013 is clear and unambiguous in its literal meaning and does not require any interpretation by a court of law. The dictum contained in the decision of the High Court of Andhra Pradesh in C. Nanda Kumar [2017 (4) TMI 662 - ANDHRA PRADESH HIGH COURT] is reiterated by the Division Bench of this court in the judgment in Pramod and others [2016 (8) TMI 1185 - KERALA HIGH COURT]. It is held therein that Section 96 of Act 30 of 2013 clearly discloses that no income tax or stamp duty shall be levied on any Award or enhancement made under the said Act, except under Section 46. Hence it is clear that the exemption is provided from levying income-tax and stamp duty. Therefore the assessment of tax made on such compensation received is not sustainable. In view of the position remaining settled, coupled with the terms of the CBDT Circular No.36/2016, dated 25.10.2016, as well as introduction of the proviso to Section 194 LA in the Income-tax Act, there exists no ambiguity that the compensation received under Act 30 of 2013 is in no manner liable to be taxed under any of the provisions of the Income-tax Act.
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