TMI Blog2017 (11) TMI 923X X X X Extracts X X X X X X X X Extracts X X X X ..... and to raise the issue that no tax is payable on the compensation/enhanced compensation which is received by them as their land was agricultural land. Once such an issue is raised before the Assessing Officer(s), it is for the Assessing Officer(s) to examine the facts of each case and then apply the law as contained in the Income Tax Act to determine the aforesaid question. Appeal disposed of with directions to AO, and Land Acquisition Collectors. - CIVIL APPEAL NO. 15041 OF 2017 (Arising out of SLP (C) No. 28069 of 2010) WITH Civil Appeal No. 15040/ 2017 (Arising out of SLP(C) No. 28070/2010), Civil Appeal No. 15042/ 2017 (Arising out of SLP(C) No. 227/2011) - - - Dated:- 15-9-2017 - CIVIL APPEAL NO. 15041 OF 2017 (Arising out of SLP ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2017 (Arising out of SLP(C) No. 33942/2011), Civil Appeal No. 15082/ 2017 (Arising out of SLP(C) No. 30644/2011), Civil Appeal No. 15085/ 2017 (Arising out of SLP(C) No. 10186/2012), Civil Appeal No. 15093/ 2017 (Arising out of SLP(C) No. 25873/2013), Civil Appeal No. 15039/ 2017 (Arising out of SLP(C) No. 34011/2011), Civil Appeal No. 15084/ 2017 (Arising out of SLP(C) No. 226/2012), Civil Appeal No. 15088/ 2017 (Arising out of SLP(C) No. 11465/2012), Civil Appeal No. 15087/ 2017 (Arising out of SLP(C) No. 224/2012), Civil Appeal No. 15086/ 2017 (Arising out of SLP(C) No. 225/2012), Civil Appeal No. 15089/ 2017 (Arising out of SLP(C) No. 2734/2012), Civil Appeal No. 15094/ 2017 (Arising out of SLP(C) No. 19887/2014), W.P.(C) No. 590/2016, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ensation or enhanced compensation, etc., on account of compulsory acquisition of land under the provisions of Land Acquisition Act, 1894. An admitted fact which is common in all these appeals is that while disbursing the compensation, the Land Acquisition Collector had deducted the tax at source and deposited the same with the Income Tax Department. These appellants preferred the writ petition in the High Court stating that no such deduction at source was permissible in view of the provisions of Section 194LA of the Income Tax Act, 1961, since the land which was acquired was agricultural land and this provision categorically mentions that in respect of agricultural land, tax at source is not to be deducted. There is no quarrel about t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... well. It is submitted by Mr. Maninder Singh, learned Additional Solicitor General, that the direction to refund the amount and calling upon the Collector to determine as to whether the compensation paid is for property other than agricultural land or not, is not in accordance with the provisions of the Income Tax Act. He submitted that the matter should have been remitted to the Assessing Officer to decide the nature of the land acquired in each case, inasmuch as, it is the Assessing Officer who is to come to the conclusion whether the land is agricultural land or not keeping in view the definition thereof as contained in Section 2(14)(iii) of the Income Tax Act and other incidental provisions. He has also drawn our attention to the judg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iability to pay income tax before deducting the same they will have an option to get a certificate of exemption from payment of tax, reduced rate of tax etc., from the competent officer under Section 197 of the Income Tax Act. So it is only just and proper that the State Government issues necessary directions to the Land Acquisition Officer to give notice regarding the liability of the claimants to pay income tax even before passing of the award. Learned counsel appearing on behalf of the respondents have submitted that in some of the cases tax which was deducted has already been refunded to them. They have also referred to Circular dated 13.04.2011 issued by the Department of Land Resources, Ministry of Rural Development, Government of In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax which was deducted at source and deposited with the Income Tax Department. On the filing of these returns, the Assessing Officer(s) shall go into the aforesaid question and wherever it is found that the compensation was received in respect of agricultural land, the tax deposited with the Income Tax Department shall be refunded to these respondents. (2) While determining as to whether the compensation paid was for agricultural land or not, the Assessing Officer(s) will keep in mind the provisions of Section 28 of the Land Acquisition Act and the law laid down by this Court in 'Commissioner of Income Tax, Faridabad v. Ghanshyam (HUF)' [2009 (8) SCC 412] in order to ascertain whether the interest given under the said provision am ..... X X X X Extracts X X X X X X X X Extracts X X X X
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