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TMI Blog2022 (6) TMI 525X X X X Extracts X X X X X X X X Extracts X X X X ..... udes any person other than (i) Appropriate Government (ii) Government Company, (iii) Association of persons or Trust or Society as registered under the Societies Registration Act, wholly or partially aided by the appropriate Government or controlled by the Appropriate Government. The respondent no.1 is not a specified person within the meaning of Section 46. In view of that, as the exemption under Section 96 would squarely apply, no income tax can be levied in the present matter for the amount of compensation, inter alia respondent No.1 could not have deducted amount of TDS from the amount of compensation paid to the petitioner. Manner in which the TDS as deducted by respondent No.1 can be refunded to the petitioner - The petitioner has relied upon Rule 37BA of the Income Tax Rules, 1962 (hereinafter referred to as the Rules, 1962 ) which provides that credit for tax deducted at source and paid to the Central Government in accordance with provisions of Chapter XVII shall be given to the person to whom payment has been made or credit has been given. (hereinafter referred to as deductee ) on the basis of information relating to deduction of tax furnished by the deductor to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 200A more particularly Clause (d) thereof. (iii) The parties shall thereafter take steps for refund of the amount in accordance with the provisions of Income Tax Act and Rules. - WRIT PETITION NO. 1049 OF 2021 - - - Dated:- 9-6-2022 - S.V. GANGAPURWALA M. G. SEWLIKAR, JJ. Mr. Devendra Jain, Advocate for the Petitioner. Adv. Akshaya Puthran, Adv. Nayantara Bhattacharyya i/b. S. K. Singhi Co., LLP Advocates, Advocate for the Respondent No.1/National High Speed Rail Corporation. Mr. Suresh Kumar a/w. Ms. Sumandevi Yadav, Advocate for the Respondent Nos.2 and 3. JUDGMENT : ( Per S.V.GANGAPURWALA, J.) 1. Rule. Rule made returnable forthwith by consent of the parties. 2. The petitioner assails an action on the part of the respondent No.1 in deducting income tax at source from the compensation paid to the petitioner by the respondent No.1 for the acquisition of his land. 3. The petitioner claims to be the owner of certain plots of land situated at Bhiwandi, Thane. The respondent No.1 acquired the land of the petitioner purportedly under an agreement. The respondent No.1 deducted income tax at source from the compensation paid to the petitio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions of the Income Tax Act, 1961 (hereinafter referred to as, IT Act ), even if there is no specific provision of exemption for such compensation in the IT Act. It is further submitted that as the respondent No.1 was not supposed to deduct the tax at source, it is the respondent No.1 who should furnish a correction statement for rectification of the mistake. The learned Counsel relies upon Section 200 (3) of the IT Act. According to him, under Section 200(3), the deductor can furnish a correction statement for rectification. Section 200A (1) of the IT Act provides for processing of statement of tax deducted at source furnished by the deductor. Subclause (d) of Clause (1) of Section 200A of the IT Act, further provides for refund of excess tax deducted at source by the deductor. It is submitted that after processing the statement or correction statement furnished by the deductor, the refund can be granted. The respondent No.1 be directed to furnish the correction statement of the tax deducted at source and the amount deducted be paid to the petitioner. 7. The learned Advocate for respondent No.1 submits that amount received by the petitioner pursuant to an agreement is taxable. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... office of the Sub Divisional Officer, Bhiwandi Division, Bhiwandi for implementing the project viz. Mumbai-Ahmedabad Hi-Speed Rail Project. As per the said public notice, while purchasing the land directly for the project, the compensation will be fixed by giving 25% enhanced amount of the total compensation being calculated for the land concerned as per the provisions of Sections 26 to 33 and Schedule-I of the Act, 2013. Undisputedly, the land was acquired for a public project. Policy decision has been taken by the State Government under its Government Resolution dated 12th May 2015 for acquiring the property by private negotiations and purchases for implementation of public project. Methodology is also provided. The computation of compensation has to be under the provisions of the Act, 2013. The same is introduced to expedite the acquisition for the implementation of the project. If the parties would not agree with the negotiations and direct purchase, then the compulsory acquisition under the provisions of the Act, 2013 has to be resorted to. The Act, 2013 also recognizes the acquisition through an agreement. The reference can be had to the judgment of the Apex Court in the mat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on other than (i) Appropriate Government (ii) Government Company, (iii) Association of persons or Trust or Society as registered under the Societies Registration Act, wholly or partially aided by the appropriate Government or controlled by the Appropriate Government. The respondent no.1 is not a specified person within the meaning of Section 46. In view of that, as the exemption under Section 96 would squarely apply, no income tax can be levied in the present matter for the amount of compensation, inter alia respondent No.1 could not have deducted amount of TDS from the amount of compensation paid to the petitioner. 13. This takes us to the next question as to the manner in which the TDS as deducted by respondent No.1 can be refunded to the petitioner. The petitioner has relied upon Rule 37BA of the Income Tax Rules, 1962 (hereinafter referred to as the Rules, 1962 ) which provides that credit for tax deducted at source and paid to the Central Government in accordance with provisions of Chapter XVII shall be given to the person to whom payment has been made or credit has been given. (hereinafter referred to as deductee ) on the basis of information relating to deduction of tax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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