R Ramesha Vs Chief Commissioner of Income Tax (Karnataka High Court)
When Compensation Arrives Six Years Late, the Return Cannot Travel Back in Time: Karnataka HC Directs Consideration of Condonation u/s 119(2)(b) for Refund of TDS on Exempt Land-Acquisition Compensation
The Karnataka High Court has directed the PCIT, Bengaluru-3, to examine & decide the assessee’s application u/s 119(2)(b) seeking condonation of delay in filing the revised return for AY 2019-20, where compensation for compulsory acquisition of agricultural land was actually received only in the year 2025 after resolution of a prolonged title dispute. The assessee claimed that the compensation was exempt from income tax u/s 96 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 & consequently sought refund of the TDS deducted by the KIADB.
Background of the dispute
The petitioner claimed title, as legal heir of the original owners, over land measuring 3 acres and 20 guntas situated in Survey Nos.87/3 & 87/4 of Kothanur Village, Uttarahalli Hobli, Bengaluru South Taluk.
The lands, along with surrounding properties, had been acquired by the Karnataka Industrial Areas Development Board – KIADB under the Karnataka Industrial Areas Development Act, 1966. However, payment of compensation was delayed because of a dispute concerning the petitioner’s title to the acquired lands.
