TMI Blog2013 (7) TMI 774X X X X Extracts X X X X X X X X Extracts X X X X ..... his amount. Any liability which goes towards interest calculated under Section 34 would not obtain the benefit and if there is any deduction for TDS for such a component of interest, it shall be perfectly justified. While any deduction made under TDS will not cause any serious prejudice even if the amount ought not to have been deducted by enabling a party applying for refund, if, it might involve a large number of cases, it shall be quite unnecessary for land owners to be directed to apply for income tax for refund in every case. Such a requirement is a needless circuitous exercise. What can be prevented even in the first place by not requiring a TDS to be applied for compensation relatable to Section 23 (IA), 23(2) and 28 of the Lan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... when there shall be no such deduction at all to be made by the Collector at the time of deposit of amount. The counsel took me through the relevant provisions requiring TDS to be complied under Section 190 and 194-A which relate to deduction for interest other than income by way of interest and securities. Section 194-IA refers to the liability for transfer of any immovable property other than agricultural land and 194LA refers to the liability for payment of compensation on acquisition of certain immovable property. The acquisition of property by government involves transfer of property from an individual to the State, but even then, in view of specific provision under Section 194 LA, it is the latter provision that we have to turn to. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng its own earlier judgment passed in Sarti Vs. HSIDC in CWP No. 9739 of 2011. The Bench has observed thus:- In the present case, the interest received by the petitioner was on account of delay in making the payment of enhanced compensation and, therefore, would fall under Section 28 of the 1894 Act. Such payment could not par-take the character of compensation for acquisition of agricultural land and, thus, was not exempt under the Act. Once that was so, the tax at source had been rightly deducted by the payer. Learned counsel for the petitioner would refer to judgment of Supreme Court in Commissioner of Income-tax Faridabad Vs. Bir Singh (HUF), Ballabgarh. In C.W.P. No. 4401 of 2009, the Court has specifically dealt with the meaning ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... accretion in value and regarded as part of the compensation itself which is not the case of interest under Section 34. With a clear statement of law obtaining through the Supreme Court. I would have no difficulty in saying that any component of compensation that goes towards the discharge of liability under Section 28 must be taken as part of the compensation to which Section 194 LA shall apply and that compensation being the value of agricultural land, then the exclusion as provided under the Section shall also be attracted. In this case, compensation assessed and the interest calculated are for acquiring agricultural land and the amount deposited represented the liability under Section 28. I have no doubt in my mind that there was no requ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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