TMI Blog2014 (5) TMI 1200X X X X Extracts X X X X X X X X Extracts X X X X ..... y applying for refund, if, it might involve a large number of cases, it shall be quite unnecessary for land owners to be directed to apply for income tax for refund in every case. Such a requirement is a needless circuitous exercise. The matter is squarely covered by the aforesaid pronouncement. There would be no need to hear the State on the matter which has been already decided by this Court. Compensation for acquired land would not suffer Tax Deduction at Source (TDS) - petition allowed. - CR No. 3236 of 2014 - - - Dated:- 8-5-2014 - HON'BLE MR. JUSTICE RAJIV NARAIN RAINA For the Appellant : Mr. P.R. Yadav, Advocate ORDER RAJIV NARAIN RAINA, J.(Oral) Heard. The only question raised in this petition file ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was not exempt under the Act. Once that was so, the tax at source had been rightly deducted by the payer. Learned counsel for the petitioner would refer to judgment of Supreme Court in Commissioner of Income-tax Faridabad Vs. Bir Singh (HUF), Ballabgarh. In C.W.P. No. 4401 of 2009, the Court has specifically dealt with the meaning of' consideration for enhanced compensation' as given in Section 194 LA in the context of interest mentioned under Section 28. Section 28 of the Land Acquisition Act captions the text of the provision as Collector may be directed to pay interest on excess compensation If the amount deposited is towards for liability under Section 28, and if it shall be taken only as interest for delay in payment, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at compensation being the value of agricultural land, then the exclusion as provided under the Section shall also be attracted. In this case, compensation assessed and the interest calculated are for acquiring agricultural land and the amount deposited represented the liability under Section 28. I have no doubt in my mind that there was no requirement for collecting TDS for this amount. I clarify that in terms of the judgment of the Supreme Court any liability which goes towards interest calculated under Section 34 would not obtain the benefit and if there is any deduction for TDS for such a component of interest, it shall be perfectly justified. While any deduction made under TDS will not cause any serious prejudice even if the amount o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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