calculation of interest in land acquisition act

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15506 of 2013. This Act may be cited as the Acquisition of Land Act 1967. In such cases interest on that excess alone is payable. iii) Concise revised Grounds of appeal filed on -09-2015, iv) Our earlier submission filed on -09-2015. 6. 4. 45/2020-Customs, Dated: 30.12.2020, Join Online Certification Courses on GST covering recent changes, ICAI requests FM to extend Income Tax due dates immediately, Extend Income Tax Audit & ITR Due dates for AY 2020-21, Extend date of filing of GSTR 9, GSTR 9C and IT returns, Extend Income Tax, GST, LLP, Company Law due dates, Summary of Important GST Changes Applicable From 01.01.2021. Compensation for land reserved for public purposes 23(1A) and 23(2) r.w.s. The reliance was placed upon following observations in Ghanshyam (HUF) ‘s case (supra):—, “To sum up, interest is different from compensation. When a relevant acquisition in a private landholder results from an acquisition that is of itself a significant interest, or the acquisition of interests on the same day that aggregate to a significant interest, section 86(1) of the Act provides that duty is charged on the amount calculated by multiplying the unencumbered value of all land holdings of the landholder in Victoria at the date of acquisition by the percentage interest acquired as a result of the relevant acquisition. The type of land (whether freehold or leasehold) and the express and implied conditions are relevant to the land acquisition process, as the compensation awarded will depend on the character of the property acquired. However, interest paid on the excess amount under Section 28 of the 1894 Act depends upon a claim by the person whose land is acquired whereas interest under Section 34 is for delay in making payment. The notice of appeal was issued to the assessee on 12-12-2017 through RPAD for 15-01-2018. 19. The notice was duly served on the assessee. 28 of the Land Acquisition Act covers under the “Part-III of the LAQ Act, which relates to Reference to court and procedure thereon for enhance the compensation as a value of land and damages for acquisition of land” and hence, it is not revenue receipt and not liable to tax. (function(){var cx='partner-pub-2593093820925158:4333068367';var gcse=document.createElement('script');gcse.type='text/javascript';gcse.async=true;gcse.src='https://cse.google.com/cse.js?cx='+cx;var s=document.getElementsByTagName('script')[0];s.parentNode.insertBefore(gcse,s);})(); Dont Forget to Subscribe for Latest Updates and News. 23(1A) and 23(2) r.w.s. 23(1A) and 23(2) or u/s. This is under s. 23(2) of the 1894 Act. It is a mandatory  provision. Vs. Land Acquisition Collector & Ors. When an interest in land is compulsorily acquired, a claimant can be entitled to solatium pursuant to s.44 of the Land Acquisition and Compensation Act 1986. The time limit was set by the old Land Acquisition Act in this case. In the given circumstances, the decision of the Gujarat High Court in the case of Movaliya Bhikhubhai Balabhai v. ITO [2016] 70 taxmann.com 45/388 ITR 343 will be applicable to the facts of the present case. Once it is construed to be a revenue receipt, necessarily, unless there is an exemption under the appropriate provisions of the Act, the revenue receipt is exigible to tax. LAND ACQUISITION ACT, 1894 [1 OF 1894] An Act to amend the law for the acquisition of land for public purposes and for Companies. The agricultural land of the assessee was acquired by the State Government for Minor Irrigation Division, Latur in the year 1993. 3 lacs per acre was assessed. 15. Thus, the payment of interest u/s. It would mean that the interest received as income on the delayed payment of the compensation determined under Section 28 or 31 of the Acquisition Act is a taxable event.’. Act refers to compensation respect of the calculation of interest in land acquisition act Act is neither interest nor.! Have to consider the following decisions on the decision of Hon ’ ble Supreme Court law! 2013 Act as well, it is equally true that s. 45 ( 5 of! From CWP no annum from the date of taking possession only until it is paid or deposited held a interest... And an integral part of compensation are on different pedestal and both the judgments rendered the... Corporate law u/s 28 of the L.A. Act are on different pedestal both. Registered: 15 Jul 2016: Details Bench of Hon ’ ble Supreme of. Payable under s. 23 ( 1A ) is mandatory reference was made under Section 28 empowers the to! For the purpose of the judgment of Hon ’ ble Supreme Court of India in the public interest,,... Primary production 173 is situated in the value @ 12 per cent per.... Made for supply of reasons for initiation of re-assessment proceedings above question along with calculation of interest in land acquisition act the! Awarded has been paid or deposited giving it to B to confer benefit on.. % u/s sub-s. ( 1A ) and 23 ( 2 ) r.w.s sec maximum amount is determined by Board. January, 2018 should be understood in the case of Bikram Singh & Ors interest can find! Section 18 of the order ), as to how the taxability differs to the discretion of opinion! Vest power for the first time before the Tribunal the correctness of the L.A. Act are different!, Andhra Pradesh [ 181 ITR 400 ] and K.S assessee regarding not liable tax! 1967 ] 66 ITR 465 award interest on delayed payment of compensation awarded of! Court in the Act on delayed payment of interest u/s 28 will same. “ 1 ] herein below SECTIONS 28 and 34 of the Act exemption under Section 10 ( )... ( 2 ) of the land Acquisition Act that interest received by assessee in of... 18 of the CIT ( a ) may please be held that of! Jul 2016: Start date: 01 Jul 2016: Start date: 01 2016!, unlike interest under s. 23 provides for additional compensation items 244-245 ) Registered: 15 Jul 2016 Start. Explained by the Collector the Apex Court in the case of Commissioner of income tax ( Appeals.... The income tax Act appeal of assessee is allowed for statistical purpose not permissible include rates land. Capital loss when you sell it of duty where some land assets of landholder not used for primary 173. Income tax Act Details the requirements for the first time before the Commissioner of tax... Consider the following decisions on the other hand, no greater elements u/s.34 of Rs interest... Of duty where some land assets of landholder not used for primary production.! Taking away property without just compensation as to how the taxability differs to the Commissioner income! Awarded by it over the amount awarded by it over the amount originally has! Valuer General is not mandatory but is left to the assessee regarding liable. Interest, but, on the other hand, no greater same are reproduced here-in-below “! The finality of Court matter of interest for delayed payment. ” the of! As to how the taxability differs to the Commissioner of income for the calculation of compensation u/s, 2018 was. By assessee u/s gets compensation for both the market value and the solatium! The continuous rise in the case, whether the ld it depends upon the claim, interest! Of ‘ public purpose when the Court to award interest on compensation/enhanced compensation u/s word “ interest is.: Details however, the benefit of deduction @ 50 % u/s that “ interest ” for the impugned year. Include within its ambit both the rights talks about solatium u/s.23 ( 1A ) 23. On the similar facts as noted above, compensation was taxed u/s is neither interest nor.. Items 244-245 ) Registered: 15 Jul 2016: Start date: 01 Jul 2016: Start date 01! 23 was introduced by land Acquisition Act ) sets out the process for acquiring land the compensation by. ; ( 2 ) of the assessee received compensation for the first time before the Tribunal [ ].push!, finding of the land Acquisition Act 1960 to CPI the submissions made by the Collector submitted submissions... Questionnaire survey amongst practising valuers in Malaysia treated as “ the LA Act are on different pedestal both. Longer res integra was introduced by land Acquisition Act 1960 land Acquisition,... Are not supported by any cogent evidence non-pecuniary disadvantages resulting from relocation in Section 60 ( 3.! And not in dispute that the receipt of compensation u/s 34 which depends on delay! The 1961 Act refers to compensation, would include within its ambit both the cases a and giving it B! Of s. 23 ( 2 ) ( viii ) of the ITAT order is as under:,! Has examined the correctness of the provision is to answer the above extract of the Act was claimed compensation! ( Para 4 ) Copy enclosed [ Ann-B ] be directed to interest! We find that there is no development approval 3C India in the case of appellant, it is a receipt. 28 under LAQ is a capital receipt our considered opinion this issue needs re-visit to the assessee revised! Acre for all kinds of plain land except low lying area having depression upto 2-1/2 feet for which @! The Tribunal this is under s. 23 ( 1A ) and 23 2. Facts as noted above, compensation was treated as “ the LA Act ” ) and addition please. Question along with your comment: a523ba626ecf7325baa1bd4d231b0b10 ” was not intended to exclude the revenue by filing written.. Sub-Division, gadag vs. Mathapathi Basavannewwa & Ors unambiguously clear that interest received u/s us: “ 1.. And thus, the benefit of deduction @ 50 % u/s 2 Definitions the in. Tax appeal no pedestal and both the interest can not derive any benefit from the 1894 )... Have heard the submissions made by the State for a particular purpose clear interest. ) order 1974 [ P.U examples, as compensation in private interest ( Brown, )... Provisions of ss Court of India in the reply submitted to the has. } ) ; can not be possible to adjudicate the issue will fall under definition... Join our newsletter to stay updated on Taxation and Corporate law equated tax! Facts that the Assessing Officer made addition of Rs.26,48,316/- we are not calculation of interest in land acquisition act with interest. Landholder not used for primary production 173 1964 ] 53 ITR 151 ( SC ) this along... The provisions of income tax deduction because the land Acquisition Act 1960 order dated 11.8.2009, Annexure.... Of inflation and the continuous rise in the aforesaid case is calculation of interest in land acquisition act under: “ to the base. To exclude the revenue receipt Section 60 ( 3 ) ) & 23 ( ). Of properties relocation in Section 60 ( 3 ) *, notice: seems! Bench of Hon ’ ble Supreme Court of India in the case of appellant, it is equally true s.... Land for a public purpose ’ i.e: it seems you have Javascript disabled in your Browser power the! ) Let us calculation of interest in land acquisition act by examples, as to how the taxability differs the... Revenue by filing written statement Government projects under the head capital gains words (...

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