9911796707
Advanced Search 
TMI Blog2018 (9) TMI 360X X X X Extracts X X X X X X X X Extracts X X X X ..... n order passed by the Income Tax Appellate Tribunal "B" Bench, Mumbai (for short the "ITAT") for Assessment Years (for short "A.Y.") 2000-01 to 2009-10 in relation to the very same assessee. 2. Mr Suresh Kumar, learned counsel appearing on behalf of the Revenue submitted that, as far as Income Tax Appeal Nos. 308, 310, 312, 314 and 373 of 2016 are concerned, they give rise to three substantial questions of law which reads as under: (a) Whether on the facts and in the circumstances of the case and in law, the Hon'ble ITAT was justified in confirming the order of the Ld. CIT (A) by holding that provisions of section 194LA are not applicable, without appreciating the fact that cost of construction incurred by the assessee is the consider ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appeals as they relate to A.Y. 2008-09 and 2009-10. This additional question of law that arises in these two appeals and as projected by Mr. Suresh Kumar as being substantial, reads thus: (d) Whether on the facts and in the circumstances of the case and in law, the Hon'ble ITAT was correct in confirming the stand taken by the Ld. CIT (A) without appreciating the fact that to carry out the maintenance work of AC and Lift requires highly qualified specialized technical competency which falls within the purview of section 194J and not u/s 194C of the I.T. Act, 1961. 4. Since common questions of facts and law arise in all these appeals, they are being disposed of by this common order and Judgment. Before we advert to the legal submission ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er considering the facts of the case and hearing the submissions of parties, in relation to section 194L/194LA, the CIT(A) was convinced that there was no payment of compensation for acquisition of any land or immovable property, and therefore, the said sections had no application to the facts of the present case. Accordingly, he deleted the demand raised by the A.O. under section 201(1) and 201(1A) of the I.T. Act, 1961. 8. Similarly, the CIT(A) also observed that the Annual Maintenance Contracts were contracts for periodical inspection and routine maintenance work along with supply of several parts. He was, therefore, of the belief that such services do not constitute technical services, and therefore, section 194J had no application to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t was not disputed that there were squatters/hutment dwellers on the property of the assessee who were rehabilitated and were provided tenements of 225 sq.ft. as consideration/ compensation. These 225 sq. ft. tenements were given to each squatter/hutment dweller free of cost by the assessee. He submitted that in these facts, section 194L/194LA of the I.T. Act, 1961 was squarely attracted, and therefore, a substantial question of law arose for determination of this Court. 11. Mr Suresh Kumar further submitted that the ITAT went completely wrong in rejecting the stand of the revenue that the squatters/ hutment dwellers on the property of the assessee were deemed owners thereof as their residential/commercial units were compulsorily acquired ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the questions as proposed by the revenue were substantial questions of law. The appeals, therefore, ought to be dismissed with costs, was the submission of the learned advocate appearing on behalf of the assessee. 14. We have heard the learned counsel for parties at length and have also perused the papers and proceedings in all the appeals. We will deal with both the issues separately. 15. Section194LA of the I.T. Act, 1961 inter alia deals with payment of compensation on acquisition of certain immovable property. Section 194LA of the I.T. Act, 1961 was brought into force with effect from 1st October, 2004. Section 194L of the I.T. Act, 1961 deals with payment of compensation on acquisition of a capital asset and was omitted with effect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e State; it was encroached upon, which encroachment was removed by the assessee; and the encroaching squatters / hutment dwellers were rehabilitated. This being the case, we find that section 194L or section 194LA of the I.T. Act, 1961 had absolutely no application to the facts and circumstances of the present case. We find that the revenue has totally misunderstood the law when it assumes that the squatters / hutment dwellers are deemed owners of the land on which they squat or encroach upon. The squatters / hutment dwellers have absolutely no title in the land on which they squat or build their illegal and unauthorized hutments. This being the case, there is no question of there being any compulsory acquisition from them under any law ei ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
