Itta/150/2016 Of The Commissioner Of Income Tax (Tds) v. M/S. Greater Hyderabad Municipal Corporation (Ho)

THE HON’BLE SRI JUSTICE RAMESH RANGANATHANANDTHE HON’BLE SRI JUSTICE M.SATYANARAYANA MURTHYITTA.No.150 of 2016 JUDGMENT:(Per the Hon’ble Sri Justice RameshRanganathan) -This appeal, under Section 260A of the Income Tax Act, 1961(for short “the Act”), is preferred by the Revenue against the orderpassed by the Income Tax Appellate Tribunal, Hyderabad inITA.No.78/Hyd/2015 dated 04.09.2015.In the order under appeal the Tribunal, following its earlier orderin relation to the very same assessee for the assessment year 2006-07, held that Section 194LA of the Act is applicable only to cases ofcompulsory acquisition; and, as there was no compulsory acquisitionunder Section 146 of the GHMC Act, 1955 and the acquisition was bymutual consent, the provisions of Section 194LA of the Act was notattracted. A Division Bench of this Court, by its order in ITTA.No.665 of2014 dated 26.11.2014, held that the word “compensation” used incompulsory acquisition is wider, and takes care of not only the marketvalue but also other payments, namely solatium, interest and otheraspects; the compensation payable under Section 146 of the GHMCAct is for voluntary transfer of property by agreement; compulsoryacquisition is an involuntary transfer; and no TDS need be deductedunder Section 194LA of the Act. The GHMC Act provides for acquisition of immovable propertyboth by mutual agreement, and by compulsory acquisition whereproperty cannot be acquired by agreement.While acquisition byagreement is provided for under Section 146, compulsory acquisitionis provided for under Section 147 of the GHMC Act.As has beenrightly held by the Tribunal, Section 194LA of the Act is inapplicable toacquisition by mutual agreement under Section 146 of the GHMC Actas it applies only to compulsory acquisition.No substantial question oflaw arises for consideration in this appeal necessitating interference -under Section 260A of the Act. The appeal fails and is, accordingly, dismissed. Miscellaneouspetitions pending, if any, shall also stand dismissed. There shall be noorder as to costs. ______________________________ (RAMESH RANGANATHAN, J) ___________________________________ (M.SATYANARAYANA MURTHY, J) 14[th] July 2016JSU THE HON’BLE SRI JUSTICE RAMESH RANGANATHANAND THE HON’BLE SRI JUSTICE M.SATYANARAYANA MURTHY JSU ITTA.No.150 of 2016 Date: 14.07.2016