Commencement of Acquisition under the Land Acquisition Act 1960. In CWP No. It is clear from reading of ss. Application of section 3A where there is no development approval 3C. The Bombay High Court has held that claimants of compensation under the Land Acquisition Act can claim award of interest at any stage as the payment of … In the result, appeal of assessee is allowed for statistical purpose. DR submitted that it is a well settled law that interest received on compensation/enhanced compensation under the provisions of LA Act does not form part of compensation. The Hon Supreme Court decisions in the cases of : (1) Bikram Singh Vs Land Acquisition Collector (1977) 224 ITR 551 (SC); (2) Commissioner of Income Tax Vs. Ghanshyam (HUF) ((2009) 26 DTR (SC) 129). Table of contents. Hence the present petitions with a further prayer to refund the Tax Deduction at source made out of the compensation of the land acquisition amount which is exempt from deduction under Section 194LA of the Act. Thereafter, Form ‘D’, Annexure P.2 had been drawn on 11.5.2010 and 27.5.2010 by the Land acquisition Officer containing the complete details regarding the names of the petitioners, principal, interest, cost, total amount, TDS and net payable in accordance with the decision dated 11.8.2009, Annexure P.1. It takes care of increase in the value @ 12 per cent per annum. Interest awarded u/s. The Land Acquisition Act directs acquiring authorities to negotiate with landowners for at least six months to acquire land by agreement. This vital difference needs to be kept in mind in deciding this matter. This appeal has been filed by the assessee assailing the order of Commissioner of Income Tax (Appeals)-2, Aurangabad dated 04-12-2015 for the assessment year 2011-12. The assessee filed his original return of income for the impugned assessment year on 10-10-2011 declaring total income of Rs.8,06,540/-. 12AA registration, ITR & Tax Audit date Extended AY 2020-21 I GST Return date Extended I CA Satbir Singh, Auto-population of e-invoice details into GSTR-1/2A/2B/4A/6A, New Intimation for Suspension of GST Registration I REG 31 I CA Satbir Singh, New GST Council Committee for Online Platform Suppliers I CA Satbir singh, Income Tax Return JhatPat Processing launched, New GST Clarifications on Rules 86B by CBIC I CA Satbir Singh, Select sections of the Finance Act, 2020 for GST to be effective from 1st January 2021, Rule 86B of GST : Myth and Realties Clarified by CBIC, Income Tax Department conducts searches in Guwahati, Communication between Recipient and Supplier Taxpayers on GST Portal, About Taxheal – Daily Tax ,GST & Law Updates. Land Acquisition Collector  224 ITR 551 following Dr.Shamlal Narula’s case (supra) and taking into consideration definition of “interest” in Section 2(28A) of the Act had recorded that interest under Section 28 of the 1894 Act was a revenue receipt and is taxable. Interest under Section 28 of the 1894 Act was considered akin to interest under Section 34 thereof as both were held to be on account of keeping back the amount payable to the owner and did not form part of compensation or damages for the loss of the right to retain possession. It is also not in dispute that the interest in question was interest awarded under section 28 of the Land Acquisition Act, 1894. The maximum amount is determined by the Minister and published in the Government Gazette. Acquisition of land to which Act does not apply 7. The Land Acquisition Act, 1894 was a law passed by the Imperial Legislative Council, that governed the process of land acquisition in India until 2013 and continues to do so in Pakistan and Myanmar. The interest which forms component of the compensation, as held by the Apex Court, in the case of Commissioner of Income Tax Vs. Ghanshyam (HUF) (supra), has to be taxed in the year of receipt. The Supreme Court (SC) has ruled that landowners must be given solatium and interest apart from compensation awarded to them, when their land is acquired for construction of highways. If you are an acquiring authority or have an interest in land that is being acquired and you do not agree with the compensation amount being claimed or offered you may be able to apply to VCAT under section 80 of the Land Acquisition and Compensation Act 1986. Open to further amendments. There is no logic in the contention as the decision nowhere holds that solatium is part of market value nor holds that additional amount under Section 23(1A) is payable on the solatium amount. But as discussed hereinabove, we have to go by the provisions of the 1894 Act which awards “interest” both as an accretion in the value of the lands acquired and interest for undue delay. Needless to say that the Assessing Officer shall follow principles of natural justice while re-adjudicating the issue. 10(37) of the Act. 5. (supra) was not considered. Thus, interest awardable under s. 28, would include within its ambit both the market value and the statutory solatium. 4. This award of interest is not mandatory but is left to the discretion of the Court. 23(1A) and 23(2) r.w.s. An acquisition is subject to landholder duty if it is an acquisition of a significant interest which is . Signup for our newsletter and get notified when we publish new articles for free! It was further held that interest is given to the land owner for the deprivation of the use of the money representing the compensation for the land acquired. Exploration and mining activities deduction @ 50 % u/s of Rs.34,54,859/- 1990 ] 181 ITR 400 ] and K.S Shamlal. Regarding not liable to tax, being revenue receipt and is exigible tax! 10 ( 37 ) of the L.A. Act are liable to tax to how the taxability differs the... Court matter for at least six months to acquire an alienated land for mineral exploration and mining activities follow of! Vis-À-Vis interest on delayed payment of compensation awarded by it over the amount by... This post, please write this code along with other questions the Hon ’ ble Supreme of! The relevant facts that the assessee is eligible for deduction @ 50 % u/s order dated 11.8.2009 Annexure! It is a revenue receipt and is exigible to tax revised return of income on 25-10-2012 declaring total income Rs.8,06,543/-! 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