Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (10) TMI 75 - AT - Income TaxNon deduction of tax at source u/s 194LA - assessee paying compensation to the property owners on account of road widening - assessee corporation strongly contended that the acquisition proceedings made as per section 146 of Hyderabad Municipal Corporation Act, 1955 - CIT(A) delted the disallowance - Held that:- After considering the provisions of section 146, 147 of GHMC Act and also section 194LA of I.T. Act, 1961, it is clear that sec.146 of HMCA, 1955 is an independent provision for acquiring immovable property by the assessee corporation through an agreement without taking recourse to the provisions of the Land Acquisition Act, 1894 and only in the event of failure to invoke the provision of sec.146 of the HMCA in any particular case, the question of compulsory acquisition of land under the Land Acquisition Act, 1894 arises. Admittedly, there is no dispute that the assessee corporation has acquired the land under section 146 of GHMC Act, 1955. So far as section 194LA of I.T. Act, 1961 is concerned, the language used in section and provision is “Any person responsible for paying to a resident any sum, being in the nature of compensation or the enhanced compensation or the consideration or the enhanced consideration on account of compulsory acquisition, under any law for the time being in force, of any immovable property.” Therefore, one of the ingredients is compensation on account of compulsory acquisition if fulfilled will impose the liability of deduction of TDS under this provision. As there is no compulsory acquisition and the acquisition is by a mutual agreement as contended by the assessee corporation, therefore, to the extent of properties acquired under section 146, we are of the opinion that provisions of section 194LA of the I.T. Act, 1961 do not apply for the present case on hand. After considering the facts and circumstances of the present case, we are of the firm view that there is no infirmity in the order of the Ld. CIT(A) and accordingly we confirm the same. - Decided in favour of assessee.
|