2015 (10) TMI 2184

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..... or any such other Act relating to compulsory acquisition of land or take land under Section 14B of the Karnataka Town and Country Planning Act, 1961 ['KTCP Act' for short], where the land owner may voluntarily surrender his land free of cost and handover possession of such lands and in lieu thereof, Certificate of Development Rights ['CDR' for short] are issued by the Authority, whereby, the owner would be granted CDR rights in the form of additional floor area, which shall be equal to 1½ times of area of land surrendered. 2. In the present case, the land has been taken under Section 14B of KTCP Act and not by way of any compulsory acquisition. As such, there was no cash transaction or payment made by BBMP to the lan .....

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..... 5. We have heard Sri K.V.Aravind, learned counsel for appellant-Revenue and perused the records. 6. The submission of learned counsel for appellants is that since the land was acquired by BBMP, which could be valued in terms of money under Section 50C of I.T. Act, BBMP ought to have deducted 10% of such value and deposited the same, as required under Section 194LA of I.T. Act. 7. The Tribunal has dealt with the issue at length and has recorded a finding that the provisions of Section 194LA would be applicable only in case of compulsory acquisition, whereas, the lands acquired by BBMP was not by way of compulsory acquisition, but had been surrendered by the land owner under Section 14B of KTCP Act. Section 194LA of the Act, reads as follow .....

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..... ion of the sum payable in terms of money nor any actual payment is made in monetary terms, it would not be fair to burden a person with the obligation of deducting tax at source and exposing him to the consequence of such default. 10. We may explain this by way of an example. If a land owner surrenders 10,000 sq.ft. of his land under Section 14B of KTCP Act and thus receives CDRs for 15,000 sq.ft. floor area, clearly, there would be no monetary transaction in such a case. Now, when the BBMP has not paid any money to the land owner by cash, cheque, demand draft or any other mode, the question would be as to wherefrom BBMP has to deposit any amount as tax deduction at source. It is only when certain payment is made to a party, then the party .....

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