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2014 (8) TMI 114 - HC - Income TaxTDS on Compulsory acquisition u/s 194LA – Land acquired by agreement - Whether the land acquired by agreement by the Assessee under the Chhattisgarh Nagar Tatha Gram Nivesh Adhiniyam, 1973 is compulsory acquisition within the meaning of section 194 LA or not – Held that:- There is a purchase of the whole or any part of any statutory undertaking under any enactment in that behalf prescribing the terms on which the purchase is to be effected, the provisions of the Land Compensation Act 1961 as to compulsory acquisitions of land are excluded u/s 36(1) and the transfer of industries to public ownership did not amount to a compulsory purchase or sale - in a case of compulsory acquisition, the seller has no option - He can neither refuse to sell his land nor can he negotiate the price - The price is fixed by the statute itself. The property was not acquired under the LA-Act but under the Nivesh-Act - the seller had no option but to sell the property to the Assessee - the property was not acquired under the LA-Act and it was acquired only by agreement - after the mutual agreement between the parties, the price was stated in a notification by the Assessee, does not make it a compulsory acquisition – thus, in case of compulsory acquisition the seller has neither option to opt out of the acquisition nor can he negotiate the price - price was neither fixed by the statute nor by the principles stated but was agreed by the mutual negotiation - Tribunal has rightly held that there was no compulsory acquisition - Section 194 LA was not applicable – Decided against Revenue.
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