ACIT., (TDS), TDS, Circle-1(1), Hyderabad, Hyderabad V. M/s Greater Hyderabad Municipal Corporation (HO), Hyderabad

ITA 78/HYD/2015

• Counselvise Citation: 7822514 RSA 2015
• Duration Of Justice: 7 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-09-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 25-08-2015
• Assessment Year: 2006-2007
• Appeal Filed On: 16-01-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAMAKRISHNA BANDI
• Assessee Lawyers: S RAMA RAO
• Section: 194C; 147

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A : HYDERABAD BEFORE SHRI P.M. JAGTAP, ACCOUNTANT MEMBER AND SHRI SAKTIJIT DEY, JUDICIAL MEMBER ITA.NO.78 & 79/HYD/2015 ASSESSMENT YEAR 2006-2007 & 2007-2008 ACIT (TDS), TDS CIRCLE- 1(1),HYDERABAD. VS. M/S. GREATER HYDERABAD MUNICIPAL CORPORATION (HO) HYDERABAD. TAN HYDM00396E (APPELLANT) (RESPONDENT) FOR REVENUE : MR. RAMAKRISHNA BANDI FOR ASSESSEE : MR. S. RAMA RAO DATE OF HEARING : 2 5 .0 8 .2015 DATE OF PRONOUNCEMENT : 04 .0 9 .2015 ORDER PER SAKTIJIT DEY, J.M. THESE APPEALS FILED BY THE REVENUE ARE DIRECTED AGAINST SEPARATE BUT SIMILAR ORDERS OF LD. CIT(A)- VI, HYDERABAD, BOTH DATED 12.09.2014 FOR THE A.Y. 2 006- 2007 AND 2007-2008. SINCE FACTS AND ISSUES ARE COMM ON IN BOTH THE APPEALS, FOR THE SAKE OF CONVENIENCE, W E REFER TO THE FACTS AS INVOLVED IN A.Y. 2006-2007. 2. BRIEFLY STATED, THE ASSESSEE IS A MUNICIPAL CORPORATION (HEREINAFTER CALLED AS GHMC) AND AN INSPECTION WAS CONDUCTED ON 08.03.2006 TO VERIFY TH E ADHERENCE OF TDS PROVISIONS. ON THE BASIS OF THE DE TAILS 2 ITA.NO.78/HYD/2015 M/S. GHMC, HYDERABAD. FURNISHED BY THE GHMC, THE FOLLOWING DEFAULTS ARE N OTICED WHICH ARE DESCRIBED AS UNDER: I. NON-DEDUCTION OF TDS ON PROFESSIONAL FEE PAID II. CHARGING OF INTEREST FOR LATE REMITTANCE OF TD S III. NON-DEDUCTION OF TDS ON CONTRACT AND SALARY PAYMENTS. IV. SHORT DEDUCTION OF TDS ON PROFESSIONAL FEE PAID V. NON-DEDUCTION OF TDS ON PAYMENTS MADE FOR ACQUISITION OF LAND UNDER SECTION 194LA (RS.1,16,57,605) VI. SHORT DEDUCTION UNDER SECTION 194LA. VII. DEDUCTION OF TDS UNDER SECTION 194C INSTEAD OF 194. 2.1. THE A.O. HAS PASSED AN ORDER UNDER SECTION 201/201(1A) OF THE I.T. ACT, WITH A DIRECTION TO TH E ASSESSEE TO PAY AN AMOUNT OF RS.36,14,019 FOR NON- DEDUCTION OF TAX AT SOURCE. AGGRIEVED BY THE ORDER OF THE A.O. THE GHMC HAD PREFERRED AN APPEAL BEFORE THE LD . CIT(A) ON THE FOLLOWING GROUNDS : 1. THE ORDER OF THE LEARNED A.O. IS CONTRARY TO THE LAW AND FACTS OF THE CASE. 2. THE LEARNED A.O. ERRED IN IGNORING THE FACT THAT TH E ASSESSEE IS A LOCAL AUTHORITY DEDICATED FOR IMPROVEMENT OF THE STANDARDS OF THE CIVIL LIFE AND IT DO NOT HAVE ANY COMMERCIAL ELEMENT IN ANY OF THE ACTIVITIES. 3. THE ASSESSEE HAS GOT PROPER EXPLANATIONS AND REASONS FOR NOT DEDUCTING THE TDS FOR THE A.Y.2006-07. 3 ITA.NO.78/HYD/2015 M/S. GHMC, HYDERABAD. 4. IN THE SHORT NOTICE GIVEN IT IS VERY DIFFICULT TO S UBMIT THE INFORMATION AS THE MATTER PERTAINS TO PAST PERIODS. 5. THE APPELLANT CRAVES LEAVE TO ALTER, ADD TO AND / O R AMEND THE AFORESAID GROUNDS. 6. THE APPELLANT WISH TO BE HEARD PERSONALLY / THROUGH AUTHORIZED REPRESENTATIVE BEFORE PASSING ANY ORDER IN THIS REGARD. 3. ON CAREFUL CONSIDERATION OF THE ABOVE GROUNDS RAISED BY THE ASSESSEE CORPORATION, THE LD. CIT(A) PARTLY ALLOWED THE GROUNDS RELATING TO (I) DEMAND RAISED O N ACCOUNT OF NON-DEDUCTION OF TDS ON PROFESSIONAL FEE PAID AT RS.32,334 AND RS.36,303 UNDER SECTION 201 OF THE ACT (II) CHARGING OF INTEREST UNDER SECTION 201A FOR LA TE REMITTANCE OF TDS AT RS.23,280 AND RS.26,138 UNDER SECTION 201(1A) (III) CHARGING OF INTEREST UNDER SE CTION 201(1A) FOR LATE REMITTANCE OF TDS AT RS.5,29,390 O N THESE ISSUES, THE REVENUE DID NOT PREFER ANY APPEAL BEFORE THE TRIBUNAL. 3.1. WITH RESPECT TO GROUNDS OF (I) SHORT DEDUCTIO N OF TDS ON PROFESSIONAL FEE PAID UNDER SECTION 201 A T RS.16,600 AND RS.11,995 UNDER SECTION 201(1A) (II) DEMAND RAISED ON ACCOUNT OF SHORT DEDUCTION OF TAX ON COMPENSATION PAID TOWARDS ACQUISITION OF LAND UNDER SECTION 194LA AT RS.2,89,874 AND AN AMOUNT OF RS.1,85,590 UNDER SECTION 201(1A), (III) DEDUCTION OF TDS UNDER SECTION 194C INSTEAD OF SECTION 194J DEMAND U/S.201 AT RS.9020 AND INTEREST U/S.201(1A), THE LE ARNED 4 ITA.NO.78/HYD/2015 M/S. GHMC, HYDERABAD. CIT(A) DISMISSED THE ABOVE GROUNDS RAISED BY THE ASSESSEE AND CONFIRMED THE ORDER OF A.O. ON THESE I SSUES THE ASSESSEE DID NOT PREFER ANY APPEAL BEFORE THE TRIBUNAL. 4. HOWEVER, THE LD. CIT(A) ALSO ALLOWED THE CLAIMS OF THE ASSESSEE CORPORATION IN RESPECT OF NO N- DEDUCTION OF TDS UNDER SECTION 201 AT RS.13,07,983 ON PAYMENTS MADE FOR ACQUISITION OF PROPERTIES AND INT EREST AT RS.9,41,747 UNDER SECTION 201(1A). AGGRIEVED BY THE ORDER OF THE LD. CIT(A), THE REVENUE HAS PREFERRED THE APPEAL BEFORE THE TRIBUNAL AND HAS RAISED THE FOLLO WING GROUNDS : 1. THE ORDER OF THE COMMISSIONER OF INCOME TAX(A) IS ERRONEOUS BOTH ON FACTS AND IN LAW. 2. THE COMMISSIONER OF INCOME TAX(A) ERRED IN HOLDING THAT THE ACQUISITION OF LAND UNDER SECTION 146 OF THE HYDERABAD MUNICIPAL CORPORATION ACT DOES NOT FALL UNDER 'COMPULSORY ACQUISITION' TO LIABLE TO TDS UNDER SECTION 194LA OF THE INCOME TAX ACT,1961, WHEN THE DEDUCTOR ITSELF DEDUCTED TAX AT SOURCE IN RESPECT OF THE LAND COMPONENT OF THE ACQUISITION MADE UNDER SECTION 146 OF THE HYDERABAD MUNICIPAL CORPORATION ACT. 3. THE COMMISSIONER OF INCOME TAX (A) ERRED IN HOLDING THAT THE DEDUCTOR OUGHT NOT TO HAVE DEDUCTED TAX AT SOURCE IN RESPECT OF STRUCTURAL COMPONENT WHEN THE DEDUCTOR ITSELF DEDUCTED TAX AT SOURCE IN RESPECT OF THE LAND COMPONENT OF THE ACQUISITION MADE UNDER SECTION 146 OF THE HYDERABAD MUNICIPAL CORPORATION ACT. 4. ANY OTHER GROUND THAT MAY BE URGED AT THE TIME OF HEARING. 5 ITA.NO.78/HYD/2015 M/S. GHMC, HYDERABAD. 5. THE LEARNED D.R. ARGUED THAT THE ASSESSEE CORPORATION ACQUIRED SOME PROPERTIES AND PAID AN AM OUNT OF RS.1,16,57,605 AS COMPENSATION TO THREE INDIVIDU AL PARTIES AND FIVE OTHER PARTIES THROUGH THE FIRST SE NIOR CIVIL JUDGE, CITY CIVIL COURT, HYDERABAD TOWARDS ACQUISITION OF STRUCTURES. THE ASSESSEE CORPORATION HAS NOT DEDUCTED TAX ON THE SAID AMOUNT. THEREFORE, THE A.O. ASSESSED AN AMOUNT OF RS.13,07,983 UNDER SECTION 20 1 AND RS.9,41,747 UNDER SECTION 201(1A). FURTHER, HE STRONGLY RELIED ON THE ORDER OF THE A.O. 6. ON THE OTHER HAND, THE LD. COUNSEL FOR THE ASSESSEE REITERATED THE SUBMISSIONS MADE BEFORE TH E LD. CIT(A) AND RELIED ON HIS ORDER. HE FURTHER CONTENDE D THAT GHMC DEMOLISHED SEVERAL PROPERTIES OF CITIZENS ON E ITHER SIDE OF THE ROAD FOR THE PURPOSE OF ROAD WIDENING I N THE CITY OF HYDERABAD AND PAID COMPENSATION. HE FURTHER ARGUED THAT BEFORE THE DEMOLITION, THE GHMC CONDUCT ED NEGOTIATIONS/DISCUSSIONS WITH THE OWNERS AND DEMOLI TION TOOK PLACE AFTER CONSENT GIVEN BY THE RESPECTIVE OW NERS AS SUCH, THE ACQUISITION STATED TO BE TAKEN WITH CONSE NT. THE GHMC COMMISSIONER IS EMPOWERED TO ACQUIRE IMMOVABLE PROPERTY BY MUTUAL CONSENT UNDER SECTION 146 OF HMC ACT, 1955. THEREFORE, THE PROVISIONS OF SECTION 19 4LA OF I.T. ACT, 1961 ARE NOT APPLICABLE TO THE ASSESSEE CORPORATION. HE FURTHER ARGUED THAT THE DEMOLITION OF STRUCTURE AND COMPENSATION PAYMENT TAKES PLACE AS P ER SECTION 146 OF HYDERABAD MUNICIPAL CORPORATION ACT, 1955 BUT NOT UNDER LAND ACQUISITION ACT, 1894. THE 6 ITA.NO.78/HYD/2015 M/S. GHMC, HYDERABAD. LEARNED A.R. FURTHER RELIED ON THE DECISION OF CO ORDINATE BENCH OF THIS TRIBUNAL IN ITA.NO.140,141, 142/HYD/2 014 DATED 18.06.2014. HE FURTHER CONTENDED THAT THE TRI BUNAL HAS APPROVED THAT THE PROVISIONS OF SECTION 194LA A RE NOT APPLICABLE TO THE PAYMENT OF COMPENSATION FOR ACQUI RING THE LAND PORTION AS WELL AS THE STRUCTURES, UNDER S ECTION 146 OF HMC ACT, 1955. 7. WE HAVE HEARD THE RIVAL CONTENTIONS AND ALSO PERUSED THE RELEVANT MATERIAL ON RECORD. AS COULD B E SEEN FROM THE FACTS OF THE CASE, THE ASSESSEE CORPORATIO N WAS IN THE PROCESS OF PAYING COMPENSATION TO THE PROPERTY OWNERS ON ACCOUNT OF ROAD WIDENING. FOR THE YEAR UN DER CONSIDERATION, THE ASSESSEE CORPORATION SHOWN TO HA VE PAID COMPENSATION OF RS.1,16,57,605 TO EIGHT PARTIE S, ON WHICH, TDS WAS NOT MADE. THE CONTENTION OF THE CORPORATION IS THAT THE COMPENSATION PAID WAS THROU GH AGREEMENTS AND NOT UNDER COMPULSORY ACQUISITIONS, A S SUCH, PROVISIONS OF SECTION 194LA OF THE I.T. ACT, 1961 WOULD NOT APPLY. THE ASSESSEE CORPORATION STRONGLY CONTENDED THAT THE ACQUISITION PROCEEDINGS MADE AS PER SECTION 146 OF HYDERABAD MUNICIPAL CORPORATION ACT, 1955 THE COMMISSIONER IS ENTITLED TO NEGOTIATE WITH THE PARTIES FOR THE PURPOSE OF ACQUISITION. THEREFORE, IT CANNOT BE TERMED AS COMPULSORY ACQUISITION PROCEEDINGS, TH EREBY INVITING THE PROVISIONS OF SECTION 194LA OF I.T. AC T, 1961. 8. BEFORE ADVERTING TO THE ANALYSIS OF THE RI VAL CONTENTIONS, IT IS NECESSARY TO EXTRACT THE PROVISI ONS OF 7 ITA.NO.78/HYD/2015 M/S. GHMC, HYDERABAD. SECTION 194LA OF THE I.T. ACT, 1961 WHICH ARE INVOK ED BY THE A.O. IN THIS CASE. PAYMENT OF COMPENSATION ON ACQUISITION OF CERTAIN IMMOVABLE PROPERTY 194LA. ANY PERSON RESPONSIBLE FOR PAYING TO A RESIDENT ANY SUM, BEING IN THE NATURE OF COMPENSATI ON OR THE ENHANCED COMPENSATION OR THE CONSIDERATION O R THE ENHANCED CONSIDERATION ON ACCOUNT OF COMPULSORY ACQUISITION, UNDER ANY LAW FOR THE TIME BEING IN FO RCE, OF ANY IMMOVABLE PROPERTY (OTHER THAN AGRICULTURAL LAND), SHALL, AT THE TIME OF PAYMENT OF SUCH SUM IN CASH OR BY ISSUE OF A CHEQUE OR DRAFT OR BY ANY OTH ER MODE, WHICHEVER IS EARLIER, DEDUCT AN AMOUNT EQUAL TO TEN PER CENT OF SUCH SUM AS INCOME-TAX THEREON: PROVIDED THAT NO DEDUCTION SHALL BE MADE UNDER THIS SECTION WHERE THE AMOUNT OF SUCH PAYMENT OR, AS THE CASE MAY BE, THE AGGREGATE AMOUNT OF SUCH PAYMENTS TO A RESIDENT DURING THE FINANCIAL YEAR DOES NOT EX CEED ONE HUNDRED THOUSAND RUPEES. EXPLANATION.FOR THE PURPOSES OF THIS SECTION, (I) AGRICULTURAL LAND MEANS AGRICULTURAL LAND I N INDIA INCLUDING LAND SITUATE IN ANY AREA REFERRED TO IN ITEMS (A) AND (B) OF SUB-CLAUSE (III) OF CLAU SE (14) OF SECTION 2; (II) IMMOVABLE PROPERTY MEANS ANY LAND (OTHER THAN AGRICULTURAL LAND) OR ANY BUILDING OR PART OF A BUILDING.] 8.1 AS CAN BE SEEN FROM THE ABOVE, THE FOLLOWING CONDITIONS ARE TO BE SATISFIED BEFORE THE PROVISION S ARE INVOKED: 8 ITA.NO.78/HYD/2015 M/S. GHMC, HYDERABAD. (I) THERE HAS TO BE AN ACQUISITION. (II) THE ACQUISITION MUST BE COMPULSORY IN NATURE. (III) THE ACQUISITION MUST BE OF AN IMMOVABLE PROPERTY; AND (IV) COMPENSATION OR CONSIDERATION MUST BE PAID ON ACCOUNT OF ACQUISITION OF SUCH IMMOVABLE PROPERTY (OTHER THAN AGRICULTURAL LAND) (V) THE AMOUNT PAID SHOULD EXCEED ONE HUNDRED THOUSAND RUPEES (AT THAT POINT OF TIME). 8.2. IT IS ALSO RELEVANT TO EXTRACT THE PROVISIONS OF SECTION 146 AND 147 OF THE HMCA, 1955 WHICH READS A S UNDER : '146. ACQUISITION OF IMMOVABLE PROPERTY BY AGREEMENT : WHENEVER IT IS PROVIDED BY THIS ACT THAT THE COMMISSIONER MAY ACQUIRE OR WHENEVER IT IS NECESSARY OR EXPEDIENT FOR ANY PURPOSE OF THI S ACT THAT THE COMMISSIONER SHALL ACQUIRE ANY IMMOVABLE PROPERTY SUCH PROPERTY MAY BE ACQUIRED BY THE COMMISSIONER ON BEHALF OF THE CORPORATION BY AGREEMENT ON SUCH TERMS AT SUCH RATES OR PRICES NOT EXCEEDING SUCH MAXIMUM AS SHALL BE APPROVED BY THE STANDING COMMITTEE, EITHER GENERALLY FOR ANY CLASS OF CASES OR SPECIALL Y IN A PARTICULAR CASE. (2) AND WHENEVER, UNDER ANY PROVISION OF THIS ACT, THE COMMISSIONER IS AUTHORISED TO AGREE TO PAY TILE WHOLE OR ANY PORTION OF THE EXPENSES OF ACQUIRING ANY IMMOVABLE PROPERTY, HE SHALL DO SO ON SUCH TERMS AND AT RATES OR PRICES NOT EXCEEDING SUCH MAXIMUM AS SHALL BE APPROVED BY THE STANDING COMMITTEE AS AFORESAID. (3) SUBJECT TO THE PROVISIONS OF THIS ACT, IT SHALL BE LAWFUL FOR THE COMMISSIONER ON BEHALF OF CORPORATION TO AGREE WITH THE OWNER OF ANY LAND OR OF ANY INTEREST IN LAND NEEDED BY THE CORPORATION 9 ITA.NO.78/HYD/2015 M/S. GHMC, HYDERABAD. FOR THE PURPOSES OF ANY SCHEME UNDER CHAPTER XIII OR WITH THE OWNER OF ANY RIGHT WHICH MAY HAVE BEEN CREATED BY LEGISLATIVE ENACTMENT OVER ANY STREET FORMING PART OF THE LAND SO NEEDED, FOR THE PURCHASE OF SUCH LAND OR OF ANY INTEREST IN SUCH LAND OR FOR COMPENSATING THE OWNER OF ANY SUCH RIGHT IN RESPECT OF ANY DEPRIVATION THEREOF OR INTERFERENCE THEREWITH. (4) NO CONTRACT FOR THE ACQUISITION OF ANY IMMOVABLE PROPERTY OR OF ANY INTEREST THEREIN OR ANY RIGHT THERETO OR THE PAYMENT OF ANY COMPENSATION UNDER SUB-SECTIONS (1), (2) OR (3) SHALL BE VALID, IF THE PRICE OR COMPENSATION TO BE PAID F OR SUCH PROPERTY OR INTEREST OR RIGHT EXCEEDS RUPEES FIVE THOUSAND UNLESS AND UNTIL SUCH CONTRACT HAS BEEN APPROVED BY THE CORPORATION. (5) EVERY CONTRACT OR OTHER INSTRUMENT RELATING TO THE ACQUISITION OF IMMOVABLE PROPERTY OR ANY INTEREST THEREIN OR ANY RIGHT THERETO SHALL BE EXECUTED BY COMMISSIONER, SHALL HAVE THE COMMON SEAL OF THE CORPORATION AFFIXED THERETO IN THE PRESENCE OF TWO OFFICERS NOMINATED BY THE COMMISSIONER] AND SHALL ALSO HAVE TILE SIGNATURE OF THE SAID TWO MEMBERS. IN THE MANNER PROVIDED IN SECTION 125. (6) NO CONTRACT FOR THE ACQUISITION OF IMMOVABLE PROPERTY OR ANY INTEREST THEREIN OR ANY RIGHT THERETO NOT EXECUTED AS PROVIDED IN SUB-SECTION (4) SHALL BE BINDING ON THE CORPORATION. (7) THE FOREGOING PROVISIONS OF THIS SECTION WHICH APPLY TO AN ORIGINAL CONTRACT RELATING TO THE ACQUISITION OF IMMOVABLE PROPERTY, OR ANY INTEREST THEREIN OR ANY RIGHT THERETO SHALL BE DEEMED TO APPLY ALSO TO ANY VARIATION OR DISCHARGE OF SUCH CONTRACT.' 8.3. AS SEEN FROM THE ABOVE PROVISION, I N THE EVENT OF THE INABILITY OF MCH TO ACQUIRE ANY 10 ITA.NO.78/HYD/2015 M/S. GHMC, HYDERABAD. IMMOVABLE PROPERTY THROUGH AGREEMENT IN TERMS OF SEC.146 OF THE HMCA 1955, A PROCEDURE HAS BEEN LAID OUT FOR ACQUIRING THE PROPERTY THROUGH THE PROVISIONS OF THE LAND ACQUISITION ACT, 1894, AS AMENDED FROM TIME TO TIME, FOR A PUBLIC PURPOSE, IN SEC. 147 OF THE HMCA, 1955. THE RELEVANT PORTION OF THE PROVISION, READS AS UNDER:- '147. PROCEDURE WHEN IMMOVABLE PROPERTY CANNOT BE ACQUIRED BY AGREEMENT:- (1) WHENEVER THE COMMISSIONER IS UNABLE TO ACQUIRE ANY IMMOVABLE PROPERTY UNDER THE LAST PROCEEDING SECTION BY AGREEMENT, THE GOVERNMENT MAY, IN THEIR DISCRETION, UPON THE APPLICATION OF TILE COMMISSIONER MADE WITH TILE APPROVAL OF THE STANDING COMMITTEE AND SUBJECT TO THE OTHER PROVISIONS OF THIS ACT, ORDER PROCEEDINGS TO BE TAKEN FOR ACQUIRING TILE SAME ON BEHALF OF THE CORPORATION IN ACCORDANCE WITH THE PROVISIONS OF THE LAND ACQUISITION ACT, 1894 AS AMENDED FOR A PUBLIC PURPOSE WITHIN THE MEANING OF THE PROVISIONS OF THE SAID ACT.]' 8.4. AFTER CONSIDERING THE PROVISIONS OF SECTION 1 46, 147 OF GHMC ACT AND ALSO SECTION 194LA OF I.T. ACT, 1961, IT IS CLEAR THAT SEC.146 OF HMCA, 1955 IS AN INDEPENDENT PROVISION FOR ACQUIRING IMMOVABLE PROPERTY BY THE ASSESSEE CORPORATION THROUGH AN AGREEMENT WITHOUT TAKING RECOURSE TO THE PROVISIONS OF THE LAND ACQUISITION ACT, 1894 AND ONLY IN THE EVENT OF FAILURE TO INVOKE THE PROVISION OF SEC.146 OF THE HMCA IN ANY PARTICULAR CASE, THE QUESTION OF COMPULSORY ACQUISITION OF LAND UNDER THE LAND ACQUISITION ACT, 1894 ARISES. DURING THE RELEVANT 11 ITA.NO.78/HYD/2015 M/S. GHMC, HYDERABAD. PERIOD, HOWEVER, THERE WAS NO SUCH CASE, WHERE PROCEEDINGS UNDER THE LAND ACQUISITION ACT WAS INITIATED AND IN THE PRESENT CASE ON HAND, THE ACQUISITION WAS THROUGH THE PROVISIONS OF SEC.146 O F THE HMC ACT, 1955. THEREFORE, TO THE EXTENT OF PROPERTIES ACQUIRED UNDER SECTION 146, WE ARE OF TH E FIRM VIEW THAT THE PROVISIONS OF SECTION 194LA OF T HE I.T. ACT, 1961 DO NOT APPLY TO THE PRESENT CASE ON HAND SINCE THERE WAS NO COMPULSORY ACQUISITION PROCEEDINGS INITIATED BY THE ASSESSEE CORPORATION. 8.5. APART FROM THIS, WE HAVE ALSO PERUSED THE ORDER OF THE COORDINATE BENCH OF THE TRIBUNAL IN ASSESSEES OWN CASE ITA.NO.140, 141, 142/HYD/2014 DATED 18.06.2014. THE RELEVANT FINDINGS OF THE TRIB UNAL ARE AS UNDER : WE MAKE IT CLEAR THAT TO THE EXTENT OF LAND AND STRUCTURES ACQUIRED THROUGH MUTUAL NEGOTIATIONS UNDER SECTION 146 OF GHMC ACT, 1955 WE AGREE WITH THE OPINION OF THE LD. CIT(A) GIVEN IN ASSESSMENT Y EAR 2001-2002 UNDER SECTION 194L THAT THE PROVISIONS AR E NOT APPLICABLE TO THE ACQUISITION OF PROPERTY WHICH IS NOT COMPULSORY. IT IS ALSO TO BE NOTED THAT REVENUE HAS NOT CONTESTED THE SAID ORDER. THEREFORE, ISSUE ON THAT HAS ALREADY BEEN CRYSTALLIZED. 8.6. IN THE PRESENT CASE ON HAND, THE ISSUE BEFORE US IS, WHETHER THE ASSESSEE CORPORATION IS LIABLE T O DEDUCT TDS UNDER SECTION 194LA OF I.T. ACT, 1961, ON THE A MOUNT PAID AS COMPENSATION FOR ACQUISITION OF PROPERTIES UNDER SECTION 146 OF HMC ACT, 1955 ? ADMITTEDLY, THERE I S NO DISPUTE THAT THE ASSESSEE CORPORATION HAS ACQUIRED THE 12 ITA.NO.78/HYD/2015 M/S. GHMC, HYDERABAD. LAND UNDER SECTION 146 OF GHMC ACT, 1955. SO FAR AS SECTION 194LA OF I.T. ACT, 1961 IS CONCERNED, THE L ANGUAGE USED IN SECTION AND PROVISION IS ANY PERSON RESPONSIBLE FOR PAYING TO A RESIDENT ANY SUM, BEING IN THE NATU RE OF COMPENSATION OR THE ENHANCED COMPENSATION OR THE CONSIDERATION OR THE ENHANCED CONSIDERATION ON ACCO UNT OF COMPULSORY ACQUISITION , UNDER ANY LAW FOR THE TIME BEING IN FORCE, OF ANY IMMOVABLE PROPERTY. THEREFORE, ONE OF THE INGREDIENTS IS COMPENSATION ON ACCOUNT OF COMPULSOR Y ACQUISITION IF FULFILLED WILL IMPOSE THE LIABILITY OF DEDUCTION OF TDS UNDER THIS PROVISION. AS THERE IS NO COMPULS ORY ACQUISITION AND THE ACQUISITION IS BY A MUTUAL AGRE EMENT AS CONTENDED BY THE ASSESSEE CORPORATION, THEREFORE , TO THE EXTENT OF PROPERTIES ACQUIRED UNDER SECTION 146 , WE ARE OF THE OPINION THAT PROVISIONS OF SECTION 194LA OF THE I.T. ACT, 1961 DO NOT APPLY FOR THE PRESENT CASE ON HAND. AFTER CONSIDERING THE FACTS AND CIRCUMSTANCES OF TH E PRESENT CASE, WE ARE OF THE FIRM VIEW THAT THERE IS NO INFIRMITY IN THE ORDER OF THE LD. CIT(A) AND ACCOR DINGLY WE CONFIRM THE SAME. 9. FACTS BEING MATERIALLY SAME, FOLLOWING OUR DECISION FOR A.Y. 2006-2007 (SUPRA), WE DISMISS THE APPEAL OF THE REVENUE FOR A.Y. 2007-2008 ALSO. 10. IN THE RESULT, APPEALS OF THE REVENUE ARE DISMISSED. 13 ITA.NO.78/HYD/2015 M/S. GHMC, HYDERABAD. ORDER PRONOUNCED IN THE OPEN COURT ON 04.0 9.2015. SD/- SD/- (P.M. JAGTAP) (SAKTIJIT DEY) ACOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DATED 04 TH SEPTEMBER, 2015 VBP/- COPY TO : 1. ACIT (TDS) TDS CIRCLE 1(1), B BLOCK, 4 TH FLOOR, INCOME TAX TOWERS, A.C. GUARDS, MASAB TANK, HYDERABAD 500 004. 2. M/S. GREATER HYDERABAD MUNICIPAL CORPORA TION (HO), NEAR TANK BUND, LIBERTY CIRCLE, HYDERABAD. 3. CIT (A) - V I , 6A, I.T. TOWERS, A.C. GUARDS, HYDERABAD 500 004. 4 . CIT - (TDS) , HYDERABAD. 5 . D.R. ITAT A BENCH, HYDERABAD. 6 . GUARD FILE