TMI Blog2015 (10) TMI 540X X X X Extracts X X X X X X X X Extracts X X X X ..... of amounts as compensation for acquisition of land, is governed either by the provisions Section 194LA or in other cases by Section 194IA. In both these provisions, the liability to deduct tax at source is on any person responsible for paying any sum by way of consideration/compensation to another, in connection with acquisition/transfer of immovable property. It is significant to note that, in neither of these provisions is the mandate of deduction of tax at source qualified by the requirement that the amount paid by way of compensation/consideration should constitute an income of the recepient under the Income Tax Act. Therefore, not impressed with the submission of counsel for the petitioner that the provisions of Section 96 of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... petitioner that, as per the provisions of Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (hereinafter referred to as the 2013 Act ), and in particular Section 96 therein, there is an exemption envisaged from income tax in respect of amounts by way of compensation received by landowners. It is his contention therefore, that in the light of the said provision under the 2013 Act, the provisions of the Income Tax Act, that govern deduction of tax at source, from payments made to the persons from whom land was acquired, will have to be read down so as to exempt the petitioner from deducting any tax at source from compensation amounts paid to such persons. The petitioner would place re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not applicable, the provisions of Section 194IA of the Income Tax Act would apply to govern deduction of tax at source from payments made to the persons from whom lands were acquired. It is the case of the respondents that, in the instant case there was no acquisition in terms of the Land Acquisition Act and therefore, Section 96 of the 2013 Act, on which the petitioner places reliance may not strictly apply. 3. I have heard the learned counsel appearing for the petitioner as also the learned Standing Counsel appearing for the 4th respondent. On a consideration of the facts and circumstances of the case and the submissions made across the bar, I find that the provisions under the Income Tax Act, that govern tax deduction at source in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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