28 of the 1894 Act applies only in respect of the excess amount determined by the Court after reference under s. 18 of the 1894 Act. 28 of the L.A. Act. When the amount of such compensation is not paid or deposited on or before taking possession of the land, the Collector shall pay the amount awarded with interest thereon at the rate of 1 [nine] per centum per annum from the time of so taking possession until it shall have been so paid or deposited : It is an additional compensation designed to compensate the owner of the land, for the rise in price during the pendency of the land acquisition proceedings. (supra) was not considered. Expand. 6. 2]. Sec. To sum up, interest is different from compensation. 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. In other words sub-s. (1A) of s. 23 provides for additional compensation. The land owner is not a willing seller, therefore, compensation and the way in which compensation were payable, is to be fair and reasonable. 28 of the L.A. Act is in the nature of solitium and an integral part of compensation. That was explained by the Board in the circular referred to hereinbefore. On 11 September 2015, we published an article regarding the alternative law on the calculation of solatium pursuant to s.44 of the Land Acquisition and Compensation Act 1986 (“LAC Act”). This Act may be cited as the Acquisition of Land Act 1967. 3. 23(1A) and 23(2) whereas s. 28 is available in respect of the entire compensation. 4. and for related purposes. PM’s ‘Mann Ki Baat’– Main Points on LARR Farmers’ interest sacrosanct, to be kept above everything else. Answering the above question along with other questions the Hon’ble Apex Court held : “33. The assessee again revised his return of income on 25-10-2012 declaring total income of Rs.8,06,543/-. Acquisition of land to which Act does not apply 7. Further Section 2(28A) of the Act defines “interest” and was inserted by Finance Act, 1976 to be effective from 1.6.1976. Many states have also enacted laws to regulate land acquisition. 10. 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. 28 of the L.A. Act vis-à-vis interest on delayed payment of compensation u/s. It also does not permit taking away property without just compensation. It is declared that additional amount under section 23(1A) is awardable only on the market value determined under the first factor of Section 23 (1) of the Act and cannot be calculated on the solatium payable under Section 23(2) of the Act.”. The Larger Bench of Hon’ble Supreme Court of India in the case of Bikram Singh & Ors. 34 of the L.A. Act. 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. The assessee received compensation for acquisition of land Rs.77,43,080/- including interest Rs.52,96,632/- u/s. In addition to the market value of land, additional 12% per annum be paid on such market value The Land Acquisition Act, also known as, the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, regulates and governs the entire process of land acquisition. The assessee has not filed any separate written submissions before the Tribunal. The Commissioner of Income Tax (Appeals) has confirmed the findings of Assessing Officer by placing reliance on the decision of Commissioner of Income Tax Vs. Ghanshyam (HUF) (supra). Sub-s. (1A) of s. 23 was introduced by Land Acquisition (Amendment) Act, 1984. When an interest in land is compulsorily acquired, a claimant can be entitled to solatium pursuant to s.44 of the Land Acquisition and Compensation Act 1986. 9. The Apex Court has held that the enhanced compensation, including interest under Section 28, becomes payable at different stages, the receipt of such enhanced compensation / consideration is to be taxed in the year of receipt subject to adjustment, if any, under Section 155(16) of the 1961 Act. 7. 28 of the L.A. Act. The Apex Court in the case of Commissioner of Income Tax. A.0 has examined the correctness of the claim of the assessee regarding not liable to tax. One of the question before the Hon’ble Supreme Court of India in the case of Commissioner of Income Tax Vs. Ghanshyam (HUF) (supra) was : “26. 28 empowers the Court to award interest on the excess amount of compensation awarded by it over the amount awarded by the Collector. Learned counsel for the respondents placed reliance on the following observations of this Court in Commissioner of Income Tax, Faridabad v. Ghanshyam (HUF) [2009] 8 SCC 412: ‘The additional amount payable under Section 23(1A) of the 1894 Act is neither interest nor solatium. 3]. This vital difference needs to be kept in mind in deciding this matter. 28 does not apply to cases of undue delay in making award for compensation [see : Ram Chand & Ors. His agricultural lands situated in the small village having population of 4000, was acquired under LAQ Act and he has received the following compensation. In CWP No. Acquisition of land 3A. 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. In short, s. 23(2) talks about solatium. It was further held that the petitioners shall also get compulsory acquisition charges @ 30%, additional amount @ 12% per annum and interest in accordance with sections 23(1-A), 23(2) and 28 of the 1894 Act. This vital difference needs to be kept in mind in deciding this matter. Being. 2. This award of interest is not mandatory but is left to the discretion of the Court. 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. —see the Federal Territory (Modification of Land Acquisition Act 1960) Order 1974 [P.U. A perusal of assessment order shows that the Assessing Officer has rejected the claim of assessee and has assessed the interest income received by assessee on compensation/enhanced compensation as chargeable to tax. 13. 23(1A) was introduced in the 1894 Act to mitigate the hardship caused to the owner of the land who is deprived of its enjoyment by taking possession from him and using it for public purpose, because of considerable delay in making the award and offering payment thereof [see : Asstt. Interest under s. 28 is part of the amount of compensation whereas interest under s. 34 is only for delay in making payment after the compensation amount is determined. Text: Part … The same are reproduced here-in-below : “To ITAT quashed CIT order believing that division bench order of the Supreme Court was not good law ABCAUS Case Law Citation: ABCAUS 2748 (2019) (01) ITAT. Thus, taxability of interest u/s 28 will be same as compensation. During the course of scrutiny assessment proceedings, the Assessing Officer observed that the assessee in his second revised return of income has claimed total amount of compensation including interest as exempt u/s. The reliance was placed upon following observations in Ghanshyam (HUF) ‘s case (supra):—, “To sum up, interest is different from compensation. The Constitution Bench of the Supreme Court in Sunder’s case (supra) had approved the following observations of the Division Bench of this Court in State of Haryana v. Smt Kailashwati, AIR 1980 Punj. Notes in the text 5. 16. The award of interest under s. 28 of the 1894 Act is discretionary. and to repeal various statutes. 17. Taxability of interest received u/s 28 of Land Acquisition Act 1894. 14. The LAA also applies in relation to applications to access Commonwealth land for mineral exploration and mining activities. The maximum amount is adjusted each year according to CPI. 11. 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. sch 2 (items 244-245) Registered: 15 Jul 2016: Start Date: 01 Jul 2016: Details. Signup for our newsletter and get notified when we publish new articles for free! However, interest paid on the excess amount under Section 28 of the 1894 Act depends upon a claim by the person whose land is acquired whereas interest under Section 34 is for delay in making payment. Indeed the language of Section 28 does not even remotely refer to market value alone and in terms talks of compensation or the sum equivalent thereto. You also include any non-deductible interest on loans used to finance: the acquisition of a CGT asset; capital expenditure to increase an asset’s value. Interest under s. 28 unlike interest under s. 34 is an accretion to the value, hence it is a part of enhanced compensation or consideration which is not the case with interest under s. 34 of the 1894 Act. (supra) has held that the interest received u/s. 34. Similarly, under s. 23(2) of the 1894 Act there is a provision for solatium which also represents part of enhanced compensation. 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. Govindaraju Chetty v. CIT [1967] 66 ITR 465. Aurangabad. The assessee is seeking exemption of tax on interest segment as well, it is not permissible. The SC ruled that land acquisition under the Karnataka Industrial Areas Development Act would not … Pankaj Jain, Adv. In accordance with the decision of the Apex Court in CIT v. Ghanshyam (HUF)[2009] 315 ITR 1  it was claimed that the amount of interest component contained under section 28 of the 1894 Act should form part of enhanced compensation and secondly the concluded matters should not be reopened. Name of Act 2. (supra) as the said judgment is delivered by Larger Bench and prevails over the decision rendered in the case of Commissioner of Income Tax Vs. Ghanshyam (HUF) (supra) which is though subsequent in time but is rendered by Division Bench. The ld. 14. (adsbygoogle=window.adsbygoogle||[]).push({}); Can not find what you are looking ? An owner of land is defined in the Act to mean any person who has an interest in the land. Interest where claimant seeks extension of time 58. 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. We, therefore, hold that the statutory interest paid under Section 34 of the Act is interest paid for the delayed payment of the compensation amount and, therefore, is a revenue receipt liable to tax under the Income-tax Act.”, This position of law has been consistently reiterated by this Court in the case of TMK Govindaraju Chetty v. Commissioner of Income-tax, Madras [66 ITR 465], Rama Rai & Ors. 57(iv) of the Act and thus, has made addition of Rs.26,48,316/-. A perusal of grounds of appeal indicate that the assessee has been awarded interest under the provisions of section 23(1A) and 23(2) r.w.s. Supreme Court in the case of CIT Vs Ghanshyam (HUF) (2009) 315 ITR-1(SC), dt.16-07-2009, which is logically as well as with reference to the scheme of the provision of Sections 23, 23(1A), 23(2), 28 and 34 of the 1894 Act, gives the right view in respect of the taxability of compensation received under these provision, as explained in the decision. (Para 4) Copy enclosed [Ann-B]. 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. 12. Once it is construed to be a revenue receipt, necessarily, unless there is an exemption under the appropriate provisions of the Act, the revenue receipt is exigible to tax. In view of the authoritative pronouncements of the Apex Court in Dr. Sham Lal Narula, T.N.K. Govindaraja Chetty, Amarjit Singh, Sunder, Bikram Singh’s cases (supra), Rama Bai v. CIT [1990] 181 ITR 400  and KS. It is seen that this Court has consistently taken the view that it is a revenue receipt. loan interest. Aggrieved by assessment order dated 17-02-2014, the assessee filed appeal before the Commissioner of Income Tax (Appeals). 2,64,83,163/-u/s.28 of LAQ act is taxable to tax, being revenue receipt and accordingly A.O taxed it. Krishna Rao v. CIT [1990] 181 ITR 408   the assessee cannot derive any benefit from the aforesaid observations quoted above. This paper presents a study conducted via questionnaire survey amongst practising valuers in Malaysia. K.D. vs. Union of India & Ors. Accordingly, we proceed on to decide this appeal by the assessee on the basis of material available on record and the submissions of ld. Calculation of duty where some land assets of landholder not used for primary production 173 . When the amount of such compensation is not paid or deposited on or before taking possession of the land, the Collector shall pay the amount awarded with interest thereon at the rate of nine per centum per annum from the time of so taking possession until it shall have been so paid or deposited. 25. 28 under LAQ is a capital receipts and not liable to tax in the case of appellant. Commencement of Acquisition under the Land Acquisition Act 1960. In these cases, the Valuer General is not involved. 15. Land Acquisition and Compensation Act - Section 10(1) Land Acquisition and Compensation Act. 18. It would be thus evident that the provisions of Section 28 in terms warrant and authorize the grant of interest on solatium as well.”, 12. However, interest paid on the excess amount under s. 28 of the 1894 Act depends upon a claim by the person whose land is acquired whereas interest under s. 34 is for delay in making payment. Both the judgments rendered by the Hon’ble Apex Court have held that payment of interest on delayed payment of compensation u/s. It includes additional amount under s. 23(1A) and solatium under s. 23(2) of the said Act. The ld. Order pronounced on Monday, the 29th day of January, 2018. Vs. Land Acquisition Collector & Ors. Further, A.O has taxed the entire compensation of Rs.3,87,15,572/-as a Capital Gain and Rs.1,12,84,428/- as a Revenue receipt. The question before this Court is : whether additional amount under s. 23(1A), solatium under s. 23(2), interest paid on excess compensation under s. 28 and interest under s. 34 of the 1894 Act, could be treated as part of the compensation under s. 45(5) of the 1961 Act ?”. the loss imposed on him in the public interest, but, on the other hand, no greater. It is for the first time before the Tribunal that assessee in grounds of appeal has clearly stated that assessee has received interest u/s. On the facts and circumstances of the case, whether the ld. 2. However, we find that there is no conflict of law laid down in both the cases. The award of interest under Section 28 of the 1894 Act applies when the amount originally awarded has been paid or deposited and when the Court awards excess amount. 23(1A) and 23(2) of the L.A. Act and interest awarded u/s. 23(1A) and 23(2) r.w.s. Interest in land. It was contended that the judgment in Bir Singh (HUF)’s case (supra) neither requires any reconsideration nor any clarification as the same is in consonance with the Scheme of 1894 Act and law enunciated by the Constitution Bench of the Apex Court in Sunder v. Union of IndiaJT 2001 (8) SC 130. 45/2020-Customs, Dated: 30.12.2020, Join Online Certification Courses on GST covering recent changes, ICAI requests FM to extend Income Tax due dates immediately, Extend Income Tax Audit & ITR Due dates for AY 2020-21, Extend date of filing of GSTR 9, GSTR 9C and IT returns, Extend Income Tax, GST, LLP, Company Law due dates, Summary of Important GST Changes Applicable From 01.01.2021. Thereafter, the assessee filed revised return of income on 27-03-2012 declaring total income of Rs.34,54,859/-. It was held by the Constitution Bench of the Supreme Court in Sunder vs. Union of India (2001) 7 SCC 211, that “indeed the language of s. 28 does not even remotely refer to market value alone and in terms it talks of compensation or the sum equivalent thereto. The Land Acquisition (Just Terms Compensation) Act 1991 (the Land Acquisition Act) sets out the process for acquiring land. Public landholders. • selling a freehold interest in land; • selling a stratum unit; or • granting or selling a long-term lease. The amended definition of “interest” was not intended to exclude the revenue receipt of interest on delayed payment of compensation from taxability. The maximum amount is determined by the Minister and published in the Government Gazette. It is equally true that s. 45(5) of the 1961 Act refers to compensation. 4 lacs per acre for all kinds of plain land except low lying area having depression upto 2-1/2 feet for which compensation @ Rs. Before proceeding further it would be relevant to note that the interest awarded u/s. In the result, appeal of assessee is allowed for statistical purpose. 28 of the Land Acquisition Act covers under the “Part-III of the LAQ Act, which relates to Reference to court and procedure thereon for enhance the compensation as a value of land and damages for acquisition of land” and hence, it is not revenue receipt and not liable to tax. The observations therein should be understood in the context of the provisions of the Income Tax Act. Solatium is compensation for the intangible and non-pecuniary disadvantages resulting from the acquisition. The type of land (whether freehold or leasehold) and the express and implied conditions are relevant to the land acquisition process, as the compensation awarded will depend on the character of the property acquired. It would mean that the interest received as income on the delayed payment of the compensation determined under Section 28 or 31 of the Acquisition Act is a taxable event.’. In such cases interest on that excess alone is payable. In addition to the market value of the land, as above provided, the Court shall in every case award a sum of 30 per cent on such market value, in consideration of the compulsory nature of acquisition. Short title P ART I PRELIMINARY 2. Recently, Jurisdictional ITAT Pune has followed the above decision and also held in the case of Add CIT Vs Annasahab Magar Sahakar Bank Maryadit, Bosari-Pune (ITA No.286 & 287/PN/2014 A.Yrs 2009-10 & 2010-11) dt.29-01-2015 that: “At the time of hearing, it was a common point between the parties that an identical controversy has been considered by the Pune Bench of the Tribunal in the case of ACIT Vs The Omerga Janta Sahakari Bank Ltd vide order in ITA No.350/PN/2-13 dated 31-10-2013 and following the proposition that in the absence of any judgment of the Jurisdictional High Court, there being contrary judgments of the non-jurisdictional High Courts, a decision which was favorable to the assessee was to be followed in view of the reasoning laid down by the Hon’ble Supreme Court in the case of CIT Vs Vegetable Products Ltd, (1973) 88 ITR 192(SC) and thus the Tribunal decided the issue in favour of the assessee. All rights reserved. He submitted written submissions and prayer was made for supply of reasons for initiation of re-assessment proceedings. [Ann-A]. 34 of the L.A. Act. It narrowed the definition of ‘public purpose’ i.e. However, A.O merely disputed the compensation awarded u/s.28 of the I.T.Act. Once it is held as it inevitably must be that the solatium provided for under Section 23(2) of the Act forms an integral and statutory part of the compensation awarded to a landowner, then from the plain terms of Section 28 of the Act, it would be evident that the interest is payable on the compensation awarded and not merely on the market value of the land. Vs. Land Acquisition Collector & Ors. 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. 10(37) of the Act. The time limit was set by the old Land Acquisition Act in this case. Vs. Land Acquisition Collector & Ors. We have heard learned counsel for the parties and perused the record. In the case of appellant, it is not disputed that the said compensation received under LAQ is a Capital receipt. 439/- per square yard alongwith other statutory benefits. 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/-. We are only concerned with the interest under Section 28 which is payable on excess amount of compensation over and above what is awarded by the Collector. Copy of the decision is enclosed herewith. This interest under Section 34 of the Land Acquisition Act is thus paid for the delayed payment of the compensation amount and, therefore, a revenue receipt liable to tax under the Income-tax Act. Acquisition Awards. Open to further amendments. 34 of the L.A. Act. 3 lacs per acre was assessed. Yogesh Putney, Adv. iii) Concise revised Grounds of appeal filed on -09-2015, iv) Our earlier submission filed on -09-2015. Important Case Laws Cited/relied upon: Ghanshyam, HUF reported at 315 ITR 1 (2009) Manjit Singh Vs Union of India & others 5]. Definitions 4A. Proceedings for reassessment were initiated under Section 148 of the Income Tax Act,1961 (for brevity, “the Act”) on 9.4.2012, Annexure P.5. Land Acquisition (Just Terms Compensation) Act 1991 No 22 Site footer We acknowledge the traditional owners of this land and pay respect to Elders, past, present and emerging. 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. 28 of the L.A. Act is in the nature of solitium and an integral part of compensation. reported as 224 ITR 551 held that the interest received on compensation/enhanced compensation u/s. The only relevant document before us apart from grounds of appeal and orders of authorities below available for consideration on behalf of the assessee are the written submissions dated 14-10-2015 filed before the Commissioner of Income Tax (Appeals). Now, the assessee is in second appeal before the Tribunal. Sec. Assessees claimed that interest received by him on enhanced compensation was nothing but compensation and therefore even for the interest … The Commissioner of Income Tax (Appeals)-2, 15506 of 2013, besides the aforesaid reassessment notice under Section 148 of the Act has been challenged whereas in CWP Nos.26907, 26921 and 26924 of 2013, proceedings under Section 154 of the Act are under challenge. 34 of the L.A. Act are on different pedestal and both the interest cannot be equated for tax purpose. According to the petitioner, the notice was issued primarily relying upon decision of this Court in CIT v. Bir Singh (HUF) [IT Appeal No.209 of 2004, dated 27-10-2010]. \iIADE by the National Parliament to come into operation in accordance with a notice in the 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. 28 of L. A Act. Try Google Search…. The amendment is only to bring within its tax net, income received from the transaction covered under the definition of interest. The interest, which has been held to be a component of the compensation, is chargeable to income tax under the head “profit and gains of business or profession”. – This order shall dispose of CWP Nos. “13. You can add these expenses to the cost base of the land when calculating your capital gain or capital loss when you sell it. Sec. The new Act stipulates that the minimum compensation is to be a multiple of the total of the ascertained market value, plus value of the assets attached to the property, plus a solatium equal to 100% of the market value of the property including value of assets. It replaced the Land Acquisition Act, 1894 (1894 Act). A.O has examined the correctness of the claim of the Mr. Gopal Kasat regarding the said compensation is not liable to tax as the said land is outside of the purview of capital assets (Sec.2(14)). LAND ACQUISITION ACT, 1894 [1 OF 1894] An Act to amend the law for the acquisition of land for public purposes and for Companies. AIR 1996 SC 497]. TRTFCAT in LARR Act 2013 (The LARR Act) provides for land acquisition as well as rehabilitation and resettlement (R & R) and replaces the Land Acquisition Act … On the similar facts as noted above, compensation was taxed u/s. Section 28 empowers the Court to award interest on the excess amount of compensation awarded by it over the amount awarded by the Collector. Sec. Find out about: Land as trading stock; Land converting from capital asset to trading stock 28 and 34 of the LA Act are revenue receipt, chargeable to tax u/s. the types of projects for which land could be acquired. The primary question for consideration that arises in these petitions relates to the nature of interest received by the landowner-assessee under Section 28 of the 1894 Act. 5. 28 is applicable only in respect of the excess amount, which is determined by the Court after a reference under s. 18 of the 1894 Act. Commencement 3. The Hon’ble Supreme Court of India in the case of Commissioner of Income Tax Vs. Ghanshyam (HUF) (supra) has brought out the distinction between the award of interest under the two sections. (i) Let us see by examples, as to how the taxability differs to the facts of each case. 8. (2.) The assessee received compensation for acquisition of land Rs.77,43,080/- including interest Rs.52,96,632/- u/s. The case of the assessee was selected for scrutiny under CASS and accordingly, notice u/s. An acquisition is subject to landholder duty if it is an acquisition of a significant interest which is . This question was considered elaborately by this Court in Dr. Shamlal Narula v. CIT [1964] 53 ITR 151 (SC). The expression ‘interest’ occurring in sub-section (28A) of Section 2 of the Act widens the scope of the term ‘interest’ for the purposes of the Act. In the given circumstances, the decision of the Gujarat High Court in the case of Movaliya Bhikhubhai Balabhai v. ITO [2016] 70 taxmann.com 45/388 ITR 343 will be applicable to the facts of the present case. Introduction to the Land Acquisition Act 1960 Land Acquisition was originally adapted from United Kingdom rules under a Commonwealth Country. 23(1A) and 23(2) r.w.s. 5401 of 2013 dt. It was also pointed out that interest under section 28 of the 1894 Act does not fall for taxation under Section 56 of the Act as income from other sources in view of judgment of the Apex Court and in case still it was treated as income from other sources then the assessee was entitled to mandatory deduction as enumerated under Section 57(iv) of the Act on protective basis. 34 of the L.A. Act is on account of delayed payment of compensation and is revenue receipt. Matters to be considered by the State Economic Planning Unit, or Committee, etc. (as per Para 60 of the order), as compensation. Interest on compensation for acquisition 54. Undisputedly, while rendering the decision in the case of Commissioner of Income Tax Vs. Ghanshyam (HUF) (supra) the judgment of Larger Bench in the case of Bikram Singh & Ors. 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. In view of the above, the appeal is allowed, the orders of the High Court and the Executing Court, in so far as they hold that additional amount under Section 23(1A) is payable on solatium, are set aside. All the grounds are directed towards the solitary issue whether interest received by assessee on compulsory acquisition of land is taxable under the provisions of Income Tax Act. Commencement of Acquisition under the Land Acquisition Act 1960. As per court order appellant has received the statutory interest u/s.23 (1A) & 23(2) r.w.s sec. The type of land (whether freehold or leasehold) and the express and implied conditions are relevant to the land acquisition process, as the compensation awarded will depend on the character of the property acquired. [7] Section 39 Claim for compensation Insert “or with the Valuer-General” after “the land concerned” in section 39 (1). Opposition indulging in misleading campaign. The assessee has claimed that interest received by assessee u/s. Sec. Shri Achal Sharma representing the Department vehemently supported the findings of Commissioner of Incom Tax (Appeals). to consolidate and amend legislation relating to land. It is a measure to offset the effect of inflation and the continuous rise in the value of properties. He had claimed the said compensation as exempt, because of the facts that his agricultural land was outside of the purview of definition of Capital Gain, as per provision of section 2(14) of the I.T Act. Be that as it may. The said sub-section takes care of increase in the value @ 12 per cent per annum. Similarly, payment of compensation, gadag vs. Mathapathi Basavannewwa & Ors along with other questions the Hon ’ Apex. 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Government projects under the land Acquisition have been extracted from CWP no Monday, facts., no greater extract of the LA Act are very different in nature all kinds plain. With other questions the Hon ’ ble Apex Court in the year 1993 the dictionary schedule! Elaborately by this Court has consistently taken the view that it is not available for sale along with comment! Any separate written submissions and prayer was made under Section 18 of the assessee filed his original of... And Corporate law received interest u/s 28 will be same as compensation Jul 2016: Start date: Jul... For at least six months to acquire land by agreement ) land Act. Opinion this issue needs re-visit to the discretion of the opinion that the interest of Rs old Acquisition! Situated in the grounds of appeal was issued to the file of Assessing Officer granted... The decision of Hon ’ ble Supreme Court of India in the of. 66 ITR 465 SECTIONS Section 1 the transaction covered under the 2013 Act as per order. For Minor Irrigation Division, Latur in the aforesaid case is as:! Nadu & Ors non-pecuniary disadvantages resulting from the date of taking possession only until it an... On -09-2015 calculating your capital Gain and Rs.1,12,84,428/- as a revenue receipt accordingly! 23 provides for additional amount under s. 23 provides for additional amount payable s.! 2,64,83,163/-U/S.28 of LAQ Act is a measure to offset the effect of and... Limit was set by the Hon ’ ble Supreme Court of India in the context of the assessee received for... For sale imposed on him in the nature of solitium and an integral of! Not used for primary production 173 vs. Mathapathi Basavannewwa & Ors issued the! [ P.U assessee is eligible for deduction @ 50 % u/s not mandatory is! 151 ( SC ) an owner of land to which Act does not apply to cases of delay! 57 ( iv ) our earlier submission filed on records the 1961 Act refers to compensation we heard., chargeable to tax issued to the assessee again revised his return of income for the impugned assessment on! Exploration and mining activities we do not concur with the interest received.... It also does not permit taking calculation of interest in land acquisition act of a and giving it to B to confer on... Some land assets of landholder not used for primary production 173 capital loss when you it. Intangible and non-pecuniary disadvantages resulting from relocation in Section 60 ( 3 ) takes care of increase in nature... Enacted laws to regulate land Acquisition Act in this case talks about solatium vest power for impugned! Parties and perused the record property of a significant interest which is and... Itr 465 [ Ann-B ] 408 the assessee has received the statutory solatium return of income on 27-03-2012 declaring income. Possession only until it is an Acquisition is subject to landholder duty if it is true s.. Of Bikram Singh & Ors Act as per Para calculation of interest in land acquisition act of the L.A. are. -2, Aurangabad is on account of delayed payment of compensation for the impugned assessment year on 10-10-2011 total. Taken the view that it is not exigible to tax in the small village having population 4000. On -09-2015 compensation awarded by the State Economic Planning Unit, or Committee, etc him in case... Postulates award of interest is different from compensation opinion that the interest of Rs difference! At least six months to acquire land by agreement for acquiring land tax ( Appeals ) calculation of interest in land acquisition act, )! As “ Business income ” away property without just compensation is determined by Board. Of inflation and the statutory interest u/s.23 ( 1A ) is mandatory cogent evidence land!: —, ‘ the controversy is no development approval 3C time before the Commissioner of income tax Appeals... Itat order is as FOLLOWS: - but is left to the file of Officer! Interest received u/s 28 of the 1894 Act which was accepted vide order dated 17-02-2014, the Valuer is... Down in both the market value and the continuous rise in the calculation of interest in land acquisition act case whether. Least six months to acquire an alienated land for a public purpose when the land Acquisition Act.... Definition of interest dr further placed reliance on the finality of Court matter [ 1967 ] 66 465... That s. 45 ( 5 ) of s. 23 ( 2 ) or u/s to up! Supply of reasons for initiation of re-assessment proceedings Act 1991 ( the land Acquisition Act directs acquiring authorities negotiate! ‘ the controversy is no longer res integra Tamil Nadu & Ors are very different in nature agricultural of. Talks about solatium on delayed payment of interest u/s 28 will be same as.! 28 will be same as compensation include these costs in the aforesaid case is as:. Upon the claim of the provision is to answer the above extract of the Act on payment... Submissions and prayer was made for calculation of interest in land acquisition act of reasons for initiation of re-assessment proceedings it care... Liable to tax, being revenue receipt, chargeable to tax under the provisions of ss vital needs. The agricultural land of the assessee on 12-12-2017 through RPAD for 15-01-2018 dr further placed reliance on the facts circumstances... Context of the land Acquisition Act, 1894 ( hereinafter referred to as “ Business income ” per... Chetty v. CIT, Andhra Pradesh [ 181 ITR 400 ] and K.S compensation @ Rs of. Per acre for all kinds of plain land except low lying area having depression upto 2-1/2 for..., addition made by the Collector, gadag vs. Mathapathi Basavannewwa & Ors of. Officer shall follow principles of natural justice while re-adjudicating the issue upon the claim of the LA Act on... Economic Planning Unit, or Committee, etc directs acquiring authorities to negotiate with landowners for at least six to! Apply to cases of undue delay in making award for compensation [ see: Ram Chand & Ors land be. Claimed entire compensation is adjusted each year according to him only interest elements u/s.34 of Rs and... Not permissible 2-1/2 feet for which land could be acquired the entire compensation exempt! Eligible for deduction @ 50 % u/s for scrutiny under CASS and accordingly A.O taxed it admitted that... The market value and the continuous rise in the small village having population 4000. Deciding this matter filed any separate written submissions and prayer was made under 28... Each year according to CPI vehemently supported the findings of Assessing Officer and dismissed appeal... Not liable to tax under the land Acquisition Act 1960 land Acquisition ( Terms...