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TMI Blog2018 (6) TMI 453X X X X Extracts X X X X X X X X Extracts X X X X ..... gned amount was additional compensation and not liable to deduction of tax u/s 194A - Decided in favor of assessee. - ITA No.204 of 2017 - - - Dated:- 10-5-2018 - MR. AJAY KUMAR MITTAL, CHIEF JUSTICE AND TEJINDER SINGH DHINDSA, J. For The Appellant-Revenue : Mr. Denesh Goyal, Sr. Standing Counsel And Ms. Radhika Suri, Sr. Advocate with Mr. Manpreet Singh, Advocate ORDER Ajay Kumar Mittal, ACJ. 1. The appellant-revenue has filed the present appeal under Section 260A of the Income Tax Act, 1961 (in short, the Act ) against the order dated 30.6.2016 Annexure A.3 passed by the Income Tax Appellate Tribunal, Chandigarh Bench, Chandigarh (in short, the Tribunal ) in ITA No.131/Chd/2016 for the assessment year 201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .2012 was deposited on 22.10.2012 after due date and TDS amounting to ₹ 43,12,169/- for the quarter ending 30.9.2012 was deposited on 22.10.2012 after due date. Further, during the period from 1.4.2012 to 31.12.2012, TDS amounting to ₹ 31,75,13,979/- on interest payments towards compensation paid in respect of non agricultural land as per the provisions of Section 194A read with Section 206AA of the Act was not deducted. The Assessing Officer issued show cause notice to the respondent assessee who submitted that the delay in depositing TDS of ₹ 21,85,982/- was due to non availability of TAN as the same was allotted in the month of October, 2012 itself. So far as the issue of interest on payments of compensation for agricul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee filed an appeal before the Commissioner of Income Tax (Appeals). Vide order dated 30.11.2015, Annexure A.2, the Commissioner of Income Tax (Appeals), [CIT(A)] partly allowed the appeal and confirmed the demand for liability of interest under Section 201(1A) of the Act for ₹ 2,29,528/- for the quarter ending 30.6.2012 and ₹ 1,30,502/- for the quarter ending 30.9.2012.The CIT(A) deleted liability of demand created under Section 194A of the Act amounting to ₹ 4,33,77,833/- and interest thereon under Section 201(1A) of the Act amounting to ₹ 91,05,383/- holding that interest on compensation for acquiring agricultural land was additional compensation and not interest. Aggrieved by the order, the revenue filed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... considered the submissions. We find that as per provisions of clause (b) of Section 145A of the Income Tax Act, 1961 interest received by an assessee on compensation or on enhanced compensation as per the case may be, shall be deemed to be the income of the year in which it is received. Further as per provisions of Section 56(viii) of the Income Tax Act, 1961, income by way of interest received on compensation or enhanced compensation referred to in clause (b) of Section 145A shall be chargeable to income tax under the head income from other sources. TDS is deducted under Section 194A on the payment of interest other than interest on securities. Also, as per provisions of Section 194LA, TDS is deducted on payment of compensation on acquisit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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