M/s. Special Land And Acquisition Officer (Metro). Karnataka Industrial Areas Development Board, Bangalore V. Deputy Commissioner Of Income Tax (TDS), Circle- 2(1), Bangalore

MA 39/BANG/2022

• Counselvise Citation: [2022] 104 COUNSELVISE.COM (IT) 2949 (ITAT-BANGALORE)
• Duration Of Justice: 4 month(s) 24 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 05-09-2022
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: B
• Next Hearing Date: 30-06-2022
• Assessment Year: 2011-2012
• Appeal Filed On: 12-04-2022
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: ASHOK KULKARNI
• Keywords: TDS
• Section: 32; 28

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH : BANGALORE BEFORE SHRI. CHANDRA POOJARI, ACCOUNTANT MEMBER AND SMT. BEENA PILLAI, JUDICIAL MEMBER M.P. No. 39/Bang/2022 (in ITA No. 8/Bang/2020) Assessment Year : 2011-12 M/s. Special Land and Acquisition Officer (Metro), Karnataka Industrial Areas Development Board, 14/3, 2 nd Floor, R.P. Bhavan, Nruptunga Road, Bangalore – 560 001. PAN: AAATK1305J Vs. The Deputy Commissioner of Income-tax (TDS), Circle – 2 (1), Bangalore. APPELLANT RESPONDENT Assessee by : Shri Ashok Kulkarni, Advocate Revenue by : Shri K.R. Narayan, Addl. CIT DR Date of Hearing : 01-07-2022 Date of Pronouncement : 06-09-2022 ORDER PER BEENA PILLAI, JUDICIAL MEMBER Present miscellaneous petition is filed by assessee seeking certain typographic mistakes in the order passed by this Tribunal dated 14/10/2021. 2. The Ld.AR submitted that in the penultimate paragraph 11 at page 7 of the impugned order. Reference is made to the Land Acquisition Act instead of Karnataka Industrial Area Development Act, 1966. Page 2 of 3 M.P. No. 39/Bang/2022 (in ITA No. 8/Bang/2020) 3. We have referred to the relevant para wherein a direction is given to the Ld.CIT(A) to verify respect of the actual payer to the owner of the land whose property were acquired. After verifying the facts of the arguments, we note that assessee while acquiring land for the purposes of government the acquisition bill be determined as per Land Acquisition Act u/s. 28 & 29 on behalf of the State. In such circumstances, the compensation received by the land owners are not subjected to any TDS provisions as it is in the nature of compensation. There is another manner in which the land can be acquired by the assessee directly in the joint venture with private owners. 4. Under such circumstances, the compensation determined falls u/s. 32 of Land Acquisition Act. TDS is liable to be deducted that is the reason this Tribunal directed the Ld.CIT(A) to verify who is the actual payer. In the first scenario where the land is acquired u/s. 28 of the Land Acquisition Act, thus it is a State that makes the payment through assessee. In the second scenario it is the joint venture that makes the payment and therefore all provisions of the income tax will be applicable keeping in mind, these aspects, this Tribunal has directed the Ld.CIT(A) to verify the acquisition that has been carried out by the assessee u/s. 28 of the Land Acquisition Act. We do not find any infirmity in the observations recorded in this para 11 in sofar as a clarity is required, we also refer to the manner in which land is acquired by assessee under the specific act being the Karnataka Industrial Area Development Act, 1966. Section 28 provides for acquisition of the land wherein sub-clause (4) is the category wherein the State Government is satisfied that any Page 3 of 3 M.P. No. 39/Bang/2022 (in ITA No. 8/Bang/2020) land is to be acquired for the purpose specified in the notification which is also notified in official gazette. With the above observation, we dispose of the present miscellaneous petition in the form of clarification. In the result, the M.P. filed by the assessee stands partly allowed. Order pronounced in the open court on 06 th September, 2022. Sd/- Sd/- (CHANDRA POOJARI) (BEENA PILLAI) Accountant Member Judicial Member Bangalore, Dated, the 06 th September, 2022. /MS / Copy to: 1. Appellant 4. CIT(A) 2. Respondent 5. DR, ITAT, Bangalore 3. CIT 6. Guard file By order Assistant Registrar, ITAT, Bangalore