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Judgment
Sl.No.,LAC No.,"Enhanced
compensation
with statutory
interest
`","TDS
Deducted
`","Balance
amount
deposited
`
1,162/2002,"1,60,67,311/-","32,13,462/-","1,28,53,849/-
2,179/2004,"2,47,99,726/-","32,65,494/-","2,15,34,232/-
3,163/2002,"32,30,013/-","6,46,003/-","25,84,010/-
4,164/2002,"1,40,19,645/-","28,03,929/-","1,12,15,716/-
Sl.No.,Description,Amount,,
1,"Compensation awarded by the Court for 5A-04G
land @ rate of Rs.663772/- per acre",3385237,,
2,"Less: Compensation amount already paid LAO @
rate of Rs.90000/- per acre",459000,,
3,Excess market value,2926237,,
4,"30% Solatium due to compulsory nature (on
Rs.2926237/-)",877871,,
5,Total (3+4),3804108,,
6,"12% Additional market value from dt.03.10.96 to
08.7.99",969747,,
7,Total (5+6),4773855,,
8,"9% interest dt. 03.10.96 to 02.10.97 (on
Rs.4773855/-)",429647,,
9,"15% interest dt.03.10.97 to 30.11.12 (on
Rs.4773855/-)",10862809,,
10,Total amount,16066311,,
11,"Advocate fee & proceeding costs as directed by
Hon’ble court",1000,,
12,Grand Total,16067311,,
13,TDS (Income Tax @ 20%),3213462,,
14,Net Amount,12853849,,
a claim by the person whose land is acquired whereas interest under Section 34 is for the delay in making payment. This vital difference needs to be,,,,
kept in mind in deciding this matter. Interest under Section 28 is part of the amount of compensation whereas interest under Section 34 is only for,,,,
delay in making payment after the compensation amount is determined. Interest under Section 28 is a part of enhanced value of the land which is not,,,,
the case in the matter of payment of interest under Section 34.,,,,
It is true that ""interest"" is not compensation. It is equally true that Section 45(5) of the 1961 Act refers to compensation. But as discussed",,,,
hereinabove, we have to go by the provisions of the 1894 Act which awards ""interest"" both as an accretion in the value of the lands acquired and",,,,
interest for undue delay. Interest under Section 28 unlike interest under Section 34 is an accretion to the value, hence it is a part of enhanced",,,,
compensation or consideration which is not the case with interest under Section 34 of the 1894 Act. So also additional amount under Section 23(1-A),,,,
and solatium under Section 23(2) of the 1961 Act forms part of enhanced compensation under Section 45(5)(b) of the 1961 Act.â€,,,,
In the light of the authoritative pronouncement of Hon’ble Apex Court in GHANSHYAM’s case, interest awarded under Section 28 of",,,,
Land Acquisition Act, 1894 would partake the component of enhanced compensation and when applied to the facts on hand, it would not detain this",,,,
Court too long to arrive at a conclusion that interest that has been awarded by reference Court in exercise of the discretion vested in it by virtue of,,,,
Section 28, is interest awarded under Section 28 and not under Section 34 of the Land Acquisition Act, 1994. In that view of the matter, order passed",,,,
by the Executing Court holding that petitioner was not entitled to deduct tax at source on the interest payable on the enhanced compensation cannot be,,,,
found fault with.,,,,
At the same time, petitioner cannot be left in the lurch or in other words, it cannot be made to seek for repayment of the amount already deposited",,,,
by it particularly in the background of petitioner having taken umbrage in the light of the law as explained in BIKRAM SINGH’s case by the,,,,
Hon’ble Apex Court and as such it cannot be left with no remedy. In other words, further direction also requires to be issued by reserving liberty",,,,
to the petitioner to approach the Income Tax Department for refund of the tax already deducted at source and which has been remitted to the TDS,,,,
account and as such petitioner would be at liberty to file an application or revised return before the appropriate authority in this regard, if not already",,,,
filed. In the event of such return or application being filed, Income tax Department and/or jurisdictional Commissioner of Income Tax shall take",,,,
immediate steps to process said revised return or application and refund the amount to the petitioner to which it would be entitled to expeditiously at,,,,
any rate within six months from the date of receipt of certified copy of the order.,,,,
Petitioner shall deposit the amount which has been deducted by it as TDS and which has been now ordered to be deposited by the Executing Court,,,,
within an outer limit of eight weeks from today. Accordingly, writ petitions stand disposed of.",,,,
This Court places on record its appreciation for the services rendered by Sri K.V.Aravind, learned Standing Counsel appearing for Income Tax",,,,
Department. Registry is hereby directed to forward a copy of this order to the Commissioner of Income Tax, TDS, HMT Bhavan, Ballari Road,",,,,
Ganganagar, Bengaluru â€" 560 032.",,,,