TMI Blog2022 (11) TMI 1131X X X X Extracts X X X X X X X X Extracts X X X X ..... the R R Act relevant to Section 31(1), 38(1) and 105(3) of the R7 r Act, provides elements of R R Entitlements and at item no 4 there is choice of annuity or employement and the Schedule also fixes the minimum royalty to be paid. Section 51 of R R provides for establishment of land acquisition, rehabilitation and resettlement authority for disposal of the disputes arising out of acquisition, compensation, rehabilitation and resettlement. Section 69 provides that in determination of amount of compensation to be awarded for land acquired including the rehabilitation and resettlement entitlement, the authority shall take into consideration whether the Collector has followed the parameters set out u/s 26 of section 30. The form of award is mentioned in section 70 of the R R Act which refers to section 28. Thus, the award for the purpose of R R Act not only includes the market value of the land but also rehabilitation and resettlement entitlements allowed to the land holders arising out the social impact assessment and study of the prospective acquisition of the land. Therefore, for the purpose of the section 96 of the R R Act, not only a monetary compensation of the land and int ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion. The Ld. AO made addition on the same as there is no provision under the Income Tax Act where royalty paid to Land owner received from Haryana Govt. has been exempt from taxation. The Ld CIT()A partly allowed the appeal of the assessee upholding the addition on account of royalty of Rs. 7,12,938/- while dealing with the issue in para 7 as below:- 7. Regarding addition of Rs. 7,12,938/- on account of agriculture royalty received by the assessee which was credited to the capital account but not offered in ITR/ computation of income, the reply of the assessee has carefully been considered. It is found that there is no provision under the Income Tax Act where royalty paid to land owners received from Govt. is exempt from taxation. Therefore, the addition made by the AO is sustained. The ground of appeal is dismissed.‖ 3. The assessee has approached this tribunal by raising following grounds of appeal:- 1. The order of the Learned CIT(A) is bad in law and against the facts placed on file. On the basis of Honorable Supreme Court judgment in the case of Ghansham HUF , assessee denies any tax liability on the compensation amount received in the shape of annuity trea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... granted is provides that annuity is paid by the Govt. of Haryana to a land owner whose land is acquired by Govt. under statute and that the annuity payment is in the nature of social security and benefit scheme is a part of overall R R policy of the Govt. This R R (Rehabilitation and resettlement) policy of the Govt of Haryana has its source under the Right to fair compensation and transparency in land acquisition, rehabilitation and resettlement Act, 2013 (hereinafter referred R R Act). 9. Hon ble Supreme Court of India in MAHANADI COAL FIELDS LTD. ANR Case decided on 3rd November 2022 in MISCELLANEOUS APPLICATION NO. 231 OF 2019 IN SPECIAL LEAVE PETITION (C) NO(S). 6933 OF 2007 and Others has expressed the scope and intent of beneficial provisions R R Act in following words; 43. The provisions of the R R Act, 2013 which replaced the old Land Acquisition Act, 1894 have for the first time cast obligations upon the State to ensure that resettlement and rehabilitation is provided in addition to compensation. These rehabilitation and resettlement provisions relate not only to a right to employment for at least one member of the displaced family but also other monetary and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... settlement scheme referred to in subsection (2) shall include time limit for implementing Rehabilitation and Resettlement Scheme. (4) The draft Rehabilitation and Resettlement scheme referred to in subsection (2) shall be made known locally by wide publicity in the affected area and discussed in the concerned Gram Sabhas or Municipalities. (5) A public hearing shall be conducted in such manner as may be prescribed, after giving adequate publicity about the date, time and venue for the public hearing at the affected area: Provided that in case where an affected area involves more than one Gram Panchayat or Municipality, public hearings shall be conducted in every Gram Sabha and Municipality where more than twenty-five per cent. of land belonging to that Gram Sabha or Municipality is being acquired: Provided further that the consultation with the Gram Sabha in Scheduled Areas shall be in accordance with the provisions of the Provisions of the Panchayats (Extension to the Scheduled Areas) Act, 1996 (40 of 1996). (6) The Administrator shall, on completion of public hearing submit the draft Scheme for 17 Rehabilitation and Resettlement along with a specific report on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the appropriate Government toward the cost of acquisition of the land: Provided also that the Requiring Body shall deposit the amount promptly so as to enable the appropriate Government to publish the declaration within a period of twelve months from the date of the publication of preliminary notification under section 11. (3) In projects where land is acquired in stages, the application for acquisition itself can specify different stages for the rehabilitation and resettlement, and all declarations shall be made according to the stages so specified. (4) Every declaration referred to in sub-section (1) shall be published in the following manner, namely:- (a) in the Official Gazette; (b) in two daily newspapers being circulated in the locality, of such area of which one shall be in the regional language; (c) in the local language in the Panchayat, Municipality or Municipal Corporation, as the case may be, and in the offices of the District Collector, the Sub-Divisional Magistrate and the Tehsil; (d) uploaded on the website of the appropriate Government; (e) in the affected areas, in such manner as may be prescribed. (5) Every declaration referred to in sub-sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs to be considered by Collector in determination of award. In determining the amount of compensation to be awarded for land acquired under this Act, the Collector shall take into consideration- firstly, the market value as determined under section 26 and the award amount in accordance with the First and Second Schedules; secondly, the damage sustained by the person interested, by reason of the taking of any standing crops and trees which may be on the land at the time of the Collector's taking possession thereof; thirdly, the damage (if any) sustained by the person interested, at the time of the Collector's taking possession of the land, by reason of severing such land from his other land; fourthly, the damage (if any) sustained by the person interested, at the time of the Collector's taking possession of the land, by reason of the acquisition injuriously affecting his other property, movable or immovable, in any other manner, or his earnings; fifthly, in consequence of the acquisition of the land by the Collector, the person interested is compelled to change his residence or place of business, the reasonable expenses (if any) incidental to such change; sixthly, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at income tax shall not levied on any award or agreement under R R Act and the CBDT Circular No. 36 of 2016 dated 25.10.2016 as provided in paper book page No. 18 of ld AR, directs that:- The matter has been examined by the Board and it is hereby clarified that compensation received in respect of award or agreement which has been exempted from levy of Income-tax vide section 96 of the RFCTLARR Act shall also not be taxable under the provisions of Income Tax Act, 1961 even if there is no specific provision of exemption for such compensation in the Income Tax Act, 1961.‖ 12. Now when the aforesaid provision of R R Act are considered it becomes obvious with preparation of Rehabilitation And Resettlement Scheme u/s 16 of R R Act is the foundation upon which after necessary enquiries the land acquisition award is passed by the Collector u/s 23 of R R Act. Then sub-clause (b) of Section 23 specifically provides that rehabilitation and resettlement award as determined u/s 31 is part of the land acquisition award passed by the Collector u/s 23. Rehabilitation and resettlement award u/s 31 sub-clause (j) specifically refers to the particulars of annuity provided to the land o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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