Compensation on acquisition of an interest in land. The Commissioner of Income Tax (Appeals) while confirming the order of Assessing Officer has observed that the case of assessee is covered by the decision of Hon’ble Apex Court in the case of Bikram Singh & Ors. The Apex Court has further held that when the assessee claimant is in receipt of enhanced compensation, it shall be treated as “deemed income” and taxed on receipt basis. [7] Section 39 Claim for compensation Insert “or with the Valuer-General” after “the land concerned” in section 39 (1). The assessee has not filed any separate written submissions before the Tribunal. However, the facts have been extracted from CWP No. Under Section 34 of the 1894 Act, the Collector awards interest on the compensation offered at the rate of 9% per annum for a period of one year from the date of taking possession and thereafter at the rate of 15% per annum from the date of expiry of one year on the amount of compensation or part thereof which remains unpaid or deposited before the date of such expiry. A two-judge Bench of Justice Rohinton Fali Nariman and Justice Surya Kant ruled that Section 3J of the National Highways Act was violative of Article 14 of the Constitution of India. 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. Sec. Solatium is … 6. Needless to say that the Assessing Officer shall follow principles of natural justice while re-adjudicating the issue. The maximum amount is determined by the Minister and published in the Government Gazette. 16. 23(1A), 23(2) as also s. 28 of the 1894 Act that additional benefits are available on the market value of the acquired lands under ss. (i) Let us see by examples, as to how the taxability differs to the facts of each case. Therefore, assessee has claimed entire compensation as exempt. The Hon Jurisdictional Bombay High Court’s decision in the cases of : (1) The Dy CIT Vs Gopal Kast and others Tax Appeal No 3 of 2009 dt. 28 of the Land Acquisition Act, 1894 (hereinafter referred to as “the LA Act”). reported as 224 ITR 551 held that the interest received on compensation/enhanced compensation u/s. The Larger Bench of Hon’ble Supreme Court of India in the case of Bikram Singh & Ors. You can't claim these expenses as an income tax deduction because the land does not generate income. 2,64,83,163/-u/s.28 of LAQ act is taxable to tax, being revenue receipt and accordingly A.O taxed it. Commencement 3. This Act may be cited as the Property for Public Purposes Acquisition Act 1901, and is divided into Parts and Divisions, as ... a title to the land or interest in land in respect of which he claims. The compensation awarded by the Court includes the additional compensation awarded under Section 23(1A) and the solatium under Section 23(2) of the said Act. Both the judgments rendered by the Hon’ble Apex Court have held that payment of interest on delayed payment of compensation u/s. This paper presents a study conducted via questionnaire survey amongst practising valuers in Malaysia. In the reply, the initiation of proceedings under Section 148 of the Act was sought to be justified by relying upon judgment of this Court in Bir Singh (HUF’s case (supra). LAND ACQUISITION AND COMPENSATION ACT 1986 - SECT 41 General principles on which compensation is to be based (1) Except as otherwise provided in this Part, in assessing the amount of compensation payable to a claimant in respect of an interest in land which is acquired under this Act, regard must be had to the following factors— (a) the market value of the interest on the date of acquisition; The principle of Dr. Shamlal Narula’s case (supra) had subsequently been applied by three Judges Bench of the Apex Court in a later decision in T.N.K. The LAA also applies in relation to applications to access Commonwealth land for mineral and.: Start date: 01 Jul 2016: Start date: 01 Jul 2016: Details granted... Access Commonwealth land for mineral exploration and mining activities notice under Section 10 ( 1 ) land Act! 5 ) of the ITAT order is as FOLLOWS: - amount is determined by the and... Dated 17-02-2014, the assessee regarding not liable to tax awardable under s. 23 ( 2 ) r.w.s sch (. 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