9911796707
TMI Blog2013 (7) TMI 774X X X X Extracts X X X X X X X X Extracts X X X X ..... Learned counsel for the petitioner contended that interest paid under Section 28 of the Act is in the nature of compensation and compensation paid for acquisition of land which is agricultural land is excepted under Section 194 LA of the Income Tax Act. The Executing Court ordered, without going into the controversy, that it will be always open for the land owner to apply for refund from the Income Tax Department, if TDS is not liable to be remitted by the Collector to the Income Tax Department. Learned counsel for the petitioner would contend that there are several persons like him who have lost the property in land acquisition and it would be unfair for parties to be directed to Income Tax Department to claim refunds when there shall b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not denied. The liability is again with reference to the compensation and the amount which was paid to the owners mere in terms of entitlement under Section 28 of the Land Acquisition Act. The issue whether the interest which is paid on the compensation assessed by applying parameters under Section 23 of the Land Acquisition Act is not any longer res integra. There are two stands of views on the subject. In Rakesh Kumar & Ors. Vs. Haryana State Industrial & Infrastructure Development Corporation Ltd. (HSIDC) & Ors , CWP No. 14935 of 2011 decided on 17.8.2011, a Division Bench while addressing the issue of whether TDS would require to be deducted for compensation assessed, has observed in the course of judgment by citing its own earlier jud ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e examined. The following observation is relevant:- "It is true that "interest" is not compensation. It is equally true that Section 194 LA of the 1961 Act refers to compensation. 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. Interest under Section28 unlike interest under Section 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 Section34 of the 1894 Act." It is clear from the observations of the Supreme Court that interest under Section 28 is, unlike under Section 34 of the 1894 Act, an accretion in value and reg ..... X X X X Extracts X X X X X X X X Extracts X X X X
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