Chief Commissioner of Income Tax Vs Smt. P. Jaishree (Karnataka High Court)
Karnataka HC: Compensation for KIADB land acquisition exempt u/s 96 of 2013 Act – Land-acquisition compensation exempt from income-tax- Karnataka HC affirms refund to landowner
The Revenue preferred this writ appeal under Section 4 of the Karnataka High Court Act challenging the order of the learned Single Judge dated 09-01-2024 in W.P. No. 7660/2023.
The respondent-assessee, P. Jaishree, had received compensation upon compulsory acquisition of her land by the Karnataka Industrial Area Development Board (KIADB). The amount was offered to tax, & tax was also deducted at source. Later, realizing that such compensation was exempt from income-tax, the assessee filed an application before the CBDT u/s 119(2)(b) seeking condonation of delay & refund of TDS. The Department rejected the application.
Single Judge’s ruling
Relying on the Division Bench decision in Bangalore Metro Rail Corporation Ltd. v. Sri Balaji Corporate Services & Ors., W.A. No. 890/2022 (decided 27-09-2023), the Single Judge held that compensation received for acquisition under the Right to Fair Compensation & Transparency in Land Acquisition, Rehabilitation & Resettlement Act, 2013 is exempt u/s 96 of that Act, & consequently directed the Department to refund the entire tax collected, including TDS.
