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2024 (3) TMI 618 - KARNATAKA HIGH COURTClaim for refund on income tax or TDS paid - compensation received pursuant to acquisition by the State/KIADB [Karnataka Industrial Areas Development Board] - exemption from payment of income tax on the land acquisition compensation under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 - Claim rejected on ground that the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (‘RFCTLARR Act’) was not applicable to the compensation payable in favour of the petitioner - HELD THAT:- As rightly contended by the petitioner, perusal of the impugned Order will indicate that respondent No. 2 has committed an error in proceeding on the erroneous premise that compensation payable in favour of petitioner was on account of Metro Rail Project which was not covered by the provisions of Section 96 of RFCTLARR Act. Respondent No. 2 failed to consider and appreciate that the compensation was paid in favour of petitioner pursuant to the agreement dated 06.03.2019 entered into between the petitioner and the Special Land Acquisition Officer, KIADB, under Section 29(2) of the KIAD Act, in respect of which, petitioner would not be liable to pay income tax nor be liable to get the tax deducted at source, as held by the Division Bench of this Court in the case of Bangalore Metro Rail Corporation Limited vs. M/s Sri Balaji Corporate Services and Others [2023 (9) TMI 1443 - KARNATAKA HIGH COURT] Order - The impugned order of the respondent No. 1 is set aside and is directed to refund the entire tax collected by the respondents back to the petitioner as expeditiously as possible and at any rate within a period of one month from the date of receipt of a copy of this order.
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