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TMI Blog2015 (10) TMI 75X X X X Extracts X X X X X X X X Extracts X X X X ..... sponsible for paying to a resident any sum, being in the nature of compensation or the enhanced compensation or the consideration or the enhanced consideration on account 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 compulsory acquisition if fulfilled will impose the liability of deduction of TDS under this provision. As there is no compulsory acquisition and the acquisition is by a mutual agreement 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 the present case, we are of the firm view that there is no infirmity in the order of the Ld. CIT(A) and accordingly we confirm the same. - Decided in favour of assessee. - ITA.No.78 & 79/Hyd/2015 - - - Dated:- 4-9-2015 - SHRI P.M. JAGTAP, ACCOUNTANT MEMBER AND SHRI SAKTIJIT DEY, JUDICIAL MEMBER For The Revenue : Mr. Ramakrishna Bandi For The Assessee : Mr. S. Rama Rao ORDER PE ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... charging of interest under section 201A for late remittance of TDS at ₹ 23,280 and ₹ 26,138 under section 201(1A) (iii) charging of interest under section 201(1A) for late remittance of TDS at ₹ 5,29,390 on these issues, the Revenue did not prefer any appeal before the Tribunal. 3.1. With respect to grounds of (i) short deduction of TDS on professional fee paid under section 201 at ₹ 16,600 and ₹ 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 ₹ 2,89,874 and an amount of ₹ 1,85,590 under section 201(1A), (iii) deduction of TDS under section 194C instead of section 194J Demand u/s.201 at ₹ 9020 and interest u/s.201(1A), the learned CIT(A) dismissed the above grounds raised by the assessee and confirmed the order of A.O. On these issues 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 nondeduction of TDS under section 201 at ₹ 13,07,983 on payments made for acquisition of properties and interest at ₹ 9,41,74 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the demolition of structure and compensation payment takes place as per section 146 of Hyderabad Municipal Corporation Act, 1955 but not under Land Acquisition Act, 1894. The learned A.R. further relied on the decision of Coordinate Bench of this Tribunal in ITA.No.140,141, 142/Hyd/2014 dated 18.06.2014. He further contended that the Tribunal has approved that the provisions of section 194LA are not applicable to the payment of compensation for acquiring the land portion as well as the structures, under section 146 of HMC Act, 1955. 7. We have heard the rival contentions and also perused the relevant material on record. As could be seen from the facts of the case, the assessee corporation was in the process of paying compensation to the property owners on account of road widening. For the year under consideration, the assessee corporation shown to have paid compensation of ₹ 1,16,57,605 to eight parties, on which, TDS was not made. The contention of the corporation is that the compensation paid was through agreements and not under compulsory acquisitions, as such, provisions of section 194LA of the I.T. Act, 1961 would not apply. The assessee corporation strongly cont ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t : Whenever it is provided by this Act that the Commissioner may acquire or whenever it is necessary or expedient for any purpose of this 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 specially 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 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he meaning of the provisions of the said Act.] 8.4. After considering the provisions of section 146, 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 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 of the HMC Act, 1955. Therefore, to the extent of properties acquired under section 146, we are of the firm view that the provisions of section 194LA of the 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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