TMI Blog2015 (10) TMI 2184X X X X Extracts X X X X X X X X Extracts X X X X ..... etermination of value of land acquired by BBMP which is voluntarily surrendered by the land owner, for which CDRs were given to the land owner. As such, we are in agreement with the finding recorded by the Tribunal that provisions of Section 194LA of I.T. Act would not be attracted in the present case. Even otherwise, the Tribunal has rightly observed that the provisions of deducting tax at source and paying it over to the Government on behalf of the recipient of payment, is in the nature of vicarious liability. When there is neither quantification 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 t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee' under default for not having deducted the tax at source (TDS) under Section 194LA and deposited the same with the Income Tax Department. Consequently, after quantifying the amount of value of land so surrendered by the land owner in favour of BBMP, the Assessing officer directed that TDS at the rate of 10% under Section 194LA amounting to ₹ 2,41,91,128/- was to be deposited by the assessee. 4. An appeal filed by the respondent-BBMP was dismissed by the Commissioner of Income Tax (Appeals), which was challenged by BBMP before the Tribunal and by a detailed and reasoned order dated 14.11.2014, the appeal of BBMP has been allowed. Aggrieved by the same, Revenue has filed these appeals raising the following substantial que ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... consideration or the enhanced consideration on account of compulsory acquisition, under any law for the time being in force, of any immovable property (other than agricultural land), shall, at the time of payment of such sum in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct an amount equal to ten per cent of such sum as income-tax thereon: 8. A bare reading of the said Section would make it clear that it would be applicable only in case of payment of any sum of money as consideration on account of compulsory acquisition of any immovable property, for which payment is made in cash, cheque, demand draft or any other mode. In the present case, neither there is compulsory acquisition of the land, n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x Department. 11. If so, for example, ₹ 1.00 crore is the amount of compensation to be paid to the land owner, then instead of paying the full amount to the land owner, the acquiring body would pay ₹ 90.00 lakhs to the land owner and deduct ₹ 10.00 lakhs and deposit the same as TDS amount. But, if CDRs for 15,000 sq.ft. floor area is given to the land owner, then would the BBMP be required to issue 13,500 sq.ft. CDRs to the land owner and deposit 10%, i.e., 1500 sq.ft. CDR with the Income Tax Department or would BBMP in such a situation be required to deposit a particular sum equivalent to 1500 sq.ft. CDR, even when the entire CDR for 15000 sq.ft. floor area has been given to the land owner. 12. The concept of tax de ..... X X X X Extracts X X X X X X X X Extracts X X X X
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