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2017 (11) TMI 969 - SC - Income TaxTDS on enhanced compensation - TDS on the amount of compensation and interest received pursuant to judgment and award of the Land Acquisition Reference - whether the compensation is paid for property other than agricultural land or otherwise and whether deduction of tax at source was permissible under any provision of law? - as decided by HC [2016 (12) TMI 1084 - GUJARAT HIGH COURT] the land of the petitioner was acquired for public purpose and he received compensation and interest under the provisions of Land Acquisition Act, the assessee was not liable to pay any tax on the aforesaid amount received by him. Held that:- We find that the issue involved in this case is squarely covered by case Union of India and Ors. v. Hari Singh and Ors [2017 (11) TMI 923 - SUPREME COURT] since the Land Acquisition Collector had already deducted tax at source and deposited with the Income Tax Department, in such circumstances, better course of action, which is in consonance with the provisions of Income Tax Act, is for the respondents to approach the concerned Assessing Officer(s) and to raise the issue that no tax is payable on the compensation/enhanced compensation which is received by them as their land was agricultural land. Once such an issue is raised before the Assessing Officer(s), it is for the Assessing Officer(s) to examine the facts of each case and then apply the law as contained in the Income Tax Act to determine the aforesaid question. Appeal disposed of with directions to AO, and Land Acquisition Collectors.
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