TMI Blog2009 (10) TMI 494X X X X Extracts X X X X X X X X Extracts X X X X ..... ax could be deducted at source from the interest realized from enhanced compensation because it was regarded as revenue receipt. - 12478 of 2009 - - - Dated:- 20-10-2009 - M. M. KUMAR and JASWANT SINGH JJ. Saurav for Surinder S. Kaliramna for the petitioners. Sunil Nehra for respondent Nos. 2 to 4. JUDGMENT The judgment of the court was delivered by 1. M. M. Kumar J.-This petition filed under article 226 of the Constitution prays for issuance of direction to the respondents to refund a sum of Rs. 2,19,779, which has been deducted by the Executive Engineer P. W. D. (Water Supply and Sanitation Division, Gurgaon-respondent No. 3, as tax at source (TDS) while, disbursing the payment of enhanced compensation against ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t and the expression of "agricultural land" as defined in section 2(14)(iii)(a) and (b) of the Act as also Notification No. 9447 (F. No. 164/3/87-IT(A-1) dated January 6, 1994, issued by the Central Government, the following question of law was framed in the said case (page 506) : "Whether the interest accrued on the delayed payment of enhanced amount of compensation would partake of the character of compensation taken from 'agricultural land' and, therefore, is assess-able to deduction of TDS ?" 4. We have answered the aforementioned question in the following terms (page 506) : "The answer to the aforesaid question would depend upon as to whether interest is regarded as revenue receipt attracting the charging section of the Act or it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come-tax. The issue came up before the hon'ble Supreme Court in the case of Bikram Singh v. Land Acquisition Collector [1997] 224 ITR 551 ; [1997] 10 SCC 243. After referring to various judgments of the hon'ble Supreme Court it was concluded that interest on delayed payment on the acquisition of immovable property would be revenue receipt and would thus be exigible to tax. The view of hon'ble the Supreme Court is discernible from the perusal of paragraph 10 of the judgment which reads thus (page 557 of 224 ITR) : '10. But the question is : whether the interest on delayed payment on the acquisition of the immovable property under the Acquisition Act would not be exigible to income-tax ? It is seen that this court has consistently taken t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of compensation which is agricultural income has to be answered in the negative and against the assessee. As a sequel to the aforesaid discussion, the instant petition fails and the same is dismissed." 5. The same view has been followed by us in the case of Bhula Ram v. Union of India C. W. P. No. 1493 of 2001, decided on September 23, 2009). 6. Having heard learned counsel for the parties and perusing the paper book, no doubt is left that the issues raised in the instant petition are squarely covered by our judgment rendered in the case of Karnail Singh [2010] 326 ITR 501 (P H). Accordingly, the instant petition fails and the same is dismissed in terms of our judgment rendered in the case of Karnail Singh [2010] 326 ITR 501 (P H). ..... X X X X Extracts X X X X X X X X Extracts X X X X
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