ITO, TDS-II, Aurangabad V. The Special Land Acquisition Officer, Aurangabad

ITA 345/PUN/2010

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 56376 (ITAT-PUNE)
• Duration Of Justice: 1 year(s) 5 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-08-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2005-2006
• Appeal Filed On: 05-03-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANN KAPTHUAMA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH A , PUNE BEFORE SHRI I.C. SUDHIR (JM) AND SHRI D.KARUNAKARA RAO (AM) ITA NOS. 345 TO 349/PN/2010 (ASSTT. YEAR: 2005-06 TO 2009-10)) THE INCOME TAX OFFICER, . .. APPELLANT TDS-II, AURANGABAD 2 ND FLR, JEEVAN SUMAN, LIC BLDG., N-5, CIDCO, AURANGABAD V. THE SPECIAL LAND ACQUISITION OFFICER RESPONDENT JAYAKWADI PROJECT-2, AURANGABAD APPELLANT BY : MS. ANN KAPTHUAMA RESPONDENT BY : NONE ORDER PER BENCH IN ALL THESE APPEALS REVENUE HAS QUESTIONED COMMON FIRST APPELLATE ORDER ON SEVERAL GROUNDS INVOLVING THE ISSUE AS TO WHETHER T HE LD CIT(A) WAS JUSTIFIED IN ARRIVING AT THE CONCLUSION THAT NO TDS WAS REQUIRED TO BE DEDUCTED BY THE SPECIAL LAND ACQUISITION OFFICER BEFORE MAKING PAYMENT OF COMPENSATION TO THE FARMERS AGAINST ACQUISITION OF THE AGRICULTURAL LAND. 2. AT THE OUTSET OF HEARING, THE LD. D.R. FAIRLY PO INTED OUT THAT ISSUE RAISED IN THE GROUNDS IS FULLY COVERED BY THE DECISION OF PUN E BENCH OF THE TRIBUNAL IN THE CASE OF ITO (TDS ) V/S. THE SPECIAL LAND ACQUISITIO N OFFICER NO.2, NASIK, ITA NO. 152, 153/PN/2010 (A.YS. 2005-06 TO 2008-09) VIDE OR DER DT. 30 TH MAY 2011. SHE HAS ALSO SUPPLIED COPY OF THE SAID ORDER WITH THIS SUBMISSION THAT SHE IS ADOPTING THE SAME ARGUMENT AS ADVANCED BY THE LD. D.R. IN TH AT CASE BEFORE THE TRIBUNAL. ITA . NO 345 TO 349/PN/2010 THE SPECIAL LAND ACQUISITION OFFICER A.Y. 2005-06 TO 2009-10 PAGE OF 3 2 3. HAVING GONE THROUGH THE SAID ORDER DT. 30 TH MAY 2011 OF THE TRIBUNAL, IN THE CASE OF ITO (TDS) V/S. THE SPECIAL LAND ACQUISITIO N OFFICER (SUPRA), WE FIND THAT AN IDENTICAL ISSUE HAS ALSO BEEN DECIDED BY THE PUNE B ENCH OF THE TRIBUNAL UPHOLDING THE FIRST APPELLATE ORDER THAT THE ASSESSEE WAS NO T LIABLE FOR DEDUCTION OF TAX UNDER THE PROVISIONS OF SECTION 194 LA OF THE I.T. ACT 19 61 IN RESPECT OF COMPENSATION PAYMENT MADE ON ACCOUNT OF COMPULSORY ACQUISITION O F LANDS TO VARIOUS PERSONS. SIMILAR ARE THE FACTS IN THE PRESENT APPEALS BEFORE US. THE ITO(TDS) WAS OF THE OPINION THAT THE COMPENSATION OR ENHANCED COMPENSAT ION PAID BY SPECIAL LAND ACQUISITION OFFICER IN RESPECT OF AGRICULTURAL LAND ACQUIRED WAS LIABLE FOR DEDUCTION OF TAX AS PER THE EXPLANATION TO SECTION 194LA OF THE ACT. THE LD CIT(A) DISCUSSING THE ISSUE IN DETAIL HELD THAT THE ASSESSEE IS NOT LIABL E FOR DEDUCTION OF TAX UNDER THE PROVISIONS OF SECTION 194 LA OF THE ACT TAX IN RE SPECT OF COMPENSATION PAYMENTS MADE ON ACCOUNT OF COMPULSORY ACQUISITION OF AGRICU LTURAL LAND TO VARIOUS PERSONS FOR THE A.YS. 2005-06 TO 2009-10. HE, HOWEVER, HELD THAT THE ASSESSEE IS LIABLE UNDER THE PROVISIONS OF SECTION 194LA OF THE ACT TO DEDUCT TAX IN RESPECT OF COMPENSATION PAYMENTS MADE ON ACCOUNT OF COMPULSORY ACQUISITION OF OTHER LAND THAN AGRICULTURAL LAND. THE LD CIT(A) HAS TAKEN ASS ISTANCE OF CBDT CIRCULAR NO.5 OF 2005 DT. 15.7.2005 EXPLAINING THE PROVISIONS OF SEC . 194LA INSERTED W.E.F. 1.10.2004 VIDE THE FINANCE ACT (NO.2) ACT, 2004. THE CIRCULA R WHILE EXPLAINING THE PROVISIONS REGARDING TAX TO BE DEDUCTED AT SOURCE FROM COMPENS ATION OR ENHANCED COMPENSATION PAID ON ACQUISITION OF CERTAIN IMMOVAB LE PROPERTY HAS MADE IT CLEAR THAT NO DEDUCTION OF TAX SHALL BE MADE WHERE THE IM MOVABLE PROPERTY IS AGRICULTURAL LAND, WHETHER SITUATED WITH THE MUNICIPAL LIMITS OR NOT, AND WHERE THE AMOUNT OF COMPENSATION OR ENHANCED COMPENSATION PAID IS LESS THAN 100 THOUSAND RUPEES. UNDER SIMILAR FACTS, THE PUNE BENCH OF THE TRIBUNAL IN THE CASE OF ITO V/S. THE SPECIAL LAND ACQUISITION OFFICER NO.2, NASIK (SUPRA ) HAS UPHELD THE FINDING OF THE LD CIT(A) ON THE ISSUE. WE THUS IN VIEW OF THE SAID D ECISION DT. 30 TH MAY 2011 OF THE TRIBUNAL, DO NOT FIND REASON TO INTERFERE WITH THE FIRST APPELLATE ORDER ON THE ISSUE. ITA . NO 345 TO 349/PN/2010 THE SPECIAL LAND ACQUISITION OFFICER A.Y. 2005-06 TO 2009-10 PAGE OF 3 3 THE SAME IS UPHELD. THE ISSUE IS ACCORDINGLY DECIDE D IN FAVOUR OF THE ASSESSEE. THE GROUNDS ARE ACCORDINGLY REJECTED. 4. IN THE RESULT, APPEALS ARE DISMISSED. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 10TH AUGUST 2011. SD/- SD/- ( D. KARUNAKARA RAO ) ACCOUNTANT MEMBER ( I.C. SUDHIR ) JUDICIAL MEMBER PUNE, DATED THE 10TH AUGUST, 2011 US COPY OF THE ORDER IS FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT (T.D.S.), PUNE 4. THE CIT(A)- II, NASHIK 5. THE D.R. BA BENCH, PUNE 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL PUNE