28 of the Land Acquisition Act, 1894 on compulsory acquisition of agricultural land. 30. Agreement with appropriate go emment.. 23 42. Section Interpretation. Our work involves land in all 50 states and the U.S. territories for uses ranging from national parks to military bases to federal courthouses. Section 26. It is clear from the above that whereas interest under Section 34 is not treated as a part of income subject to tax, the interest earned under Section 28, which is on enhanced compensation, is treated as a accretion to the value and therefore, part of the enhanced compensation or consideration making it exigible to tax. Acquisition of land to which Act does not apply 7.Act not to empower authority to acquire land 7A. Whether on the facts and in the circumstances of the case the Ld. was also decided in ITA No.551/Chd/2016 has discussed the issue of taxability of interest u/s 28 received on enhanced compensation on lands compulsorily acquired by the Government as under: “7. 28—Reference to Court by Commissioner. 6 Insertion of section 9A. 8. Powers and functions of the Cabinet Secretary in land management. 28 of the Land Acquisition Act, 1894 on compulsory acquisition of agricultural land in the nature of compensation is exempt u/s. For the purpose of this section a person shall be deemed to be interested in land who would be entitled to claim an interest in compensation of the land were acquired under this act. Surinder Kumar and others in ITA No.539 to 543/Chd/2016, ITA No.673/Chd/2016, ITA No.547 to 551/Chd/2016, ITA No No.368/Chd/2014, ITA No.948/Chd/2016 and ITA No.949/Chd/2016 wherein the appellant’s appeal against order u/s 154 for this A.Y. Compensation under the Land Acquisition Act. 6. It is true that “interest” is not compensation. Act, the same have to be construed in the manner interpreted by the Hon’ble Supreme Court in Ghanshyam (HUF) (supra). Definitions. After holding that interest on enhanced compensation under Section 28 of 1894 Act is taxable, the Court dealt with the other aspect namely, the year of tax and answered this question by holding that it has to be tested on receipt basis, which means it would be taxed in the year in which it is received. The Ld. Accordingly, the AO subjected 50% of the interest received on enhanced compensation amounting to Rs.2,51,69,390/- to tax. LAND ACQUISITION AND COMPENSATION ACT 1986 TABLE OF PROVISIONS PART 1--PRELIMINARY 1.Purpose 2.Commencement 3.Definitions PART 2--ACQUISITION OF INTERESTS IN LAND Division 1--General 4.Authority to acquire or purchase in accordance with Part Division 2--Reservation of land 5.Reservation or certification of land required before acquisition Division 3--Notice of intention to … Hence, the year in which enhanced compensation is received is the year of taxability. 35—Bar to setting aside awards. Act 28 of 1994 Amended by LAWS OF TRINIDAD AND TOBAGO CHAPTER 58:01 LAND ACQUISITION ACT *15 of 2000 73 of 2000 170/2016 *See Note on page 2 MINISTRY OF THE ATTORNEY GENERAL AND LEGAL AFFAIRS www.legalaffairs.gov.tt UNOFFICIAL VERSION UPDATED TO 31ST DECEMBER 2016 6. Interest paid under section 28 of the Land Acquisition Act amounts to enhance compensation and is not taxable as interest income . A collector's decision to deny an 85-year old woman the benefit of this provision attracted the Court's censure and the imposition of exemplary costs to the tune of Rs 1 lakh ( Smt. 6.7 Although the Hon’ble Punjab & Haryana High Court considered this issue in the cases of Manjeet Singh (HUF) karta Manjeet Singh vs Union of India and Ors. Definitions 4A. Interpretation. Acquisition, etc. 4―Limitation of application. It equally is true that Section 45(5) of the 1961 Act refers to compensation. Act. Let us refer to the case of ITO Vs Sh. Declaration that land is needed for public purpose. spread over of this interest on accrual basis is not permissible. 2 No. It is observed that the Hon’ble Supreme Court in the case of CIT v/s Ghanshyam (HUF) 315 ITR 1 has held that interest paid on the excess amount, u/s 28 of 1894 Act, depends upon a claim by the person whose land is acquired whereas interest u/s 34 is for delay in making payment. Sections 39 to 42 not to apply whcre government bound by agreement 10 provide land for companies 24 44. 28 of the Land Acquisition Act, 1894 on compulsory acquisition of agricultural land in the nature of compensation is exempt u/s. Himachal Pradesh. Previous consent of appropriate government and execution of::tgreclllCnt necessary 22 40. ITAT states that, it is true that “interest” is not compensation. 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. Counsel for assessee have been rendered by the Ron ‘ble Apex Court subsequent to the decision passed by the Hon ‘ble Jurisdictional High Court in the case of Manjeet Singh (HUF) (supra). PART II – MANAGEMENT OF PUBLIC LAND General Provisions 8. Objects of Act 4. Acquisition of land to which Act applies 6. V—General 30—Right of entry. 295 Short title. Gujarat Same as that of Maharashtra. (not altering text) C1 Sch. Land to be marked out, etc. [Repealed] 3. PRELIMINARY: Short title: 1. The CIT(A) further noted that although the Hon’ble Jurisdictional High Court had taken a contrary view in the case of Manjit Singh, HUF and Sundar Lal & Another but the Hon’ble Supreme Court had reiterated this aforesaid proposition in the case of Union of India Vs. Hari Singh & Others subsequently. It depends upon the claim, unlike interest under Section 34 which depends on undue delay in making the award. That the assessee had treated the entire amount as being in the nature of compensation and exempt u/s 10(37) of the Act. rao, j. 29. Agreement with appropriate go emment.. 23 42. 5―Conflict with other laws. 7. 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. Usually, the market value is multiplied by a factor of one of two times, for land acquired in rural and urban areas. 6.6 The substitution of section 145A by Finance (No.2) Act, 2009 was not in connection with the decision of the Hon’ble Supreme Court in Ghanshyam (HUF) (supra) but was brought in to mitigate the hardship caused to the assessee on account of the decision of the Supreme Court in Smt. 10. 6.8 The Jurisdictional ITAT, Chandigarh in its decision of 17.07.2018 in Som Nath Vs. ITO, ITA No.552/Chd/2016 discussing Hon’ble Punjab & Haryana High Court decisions in the case of Manjeet Singh (HUF) and the Hari singh case (supra) held that the proposition laid down by Hon’ble Apex Court in Ghanshyam HUF (supra) is the law of the land and interest received on compulsory acquisition of land u/s 28 of Land Acquisition Act is in the nature of compensation and is not taxable u/s 56 of the Act. All Rights Reserved. It equally is true that Section 45(5) of the 1961 Act refers to compensation. As per section 145A(b) of the Income Tax Act, any interest received by an assessee on compensation or enhanced compensation, as the case may be, shall be deemed to be the income of the year in which it is received. 48/2020-Customs (ADD), Dated: 30.12.2020, Notification  No. Section 25. Section 28. Before us the Ld. 33—Service of notices. 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. In view of the above, respectfully following the decision of Hon’ble ITAT, Chandigarh in appellant’s own case in ITA No.551/Chd/2016, it is held that interest u/s 28 of the Land Acquisition Act received by the appellant is in the nature of compensation and is exempt under the provision of Section 10(37) of the I.T. Enhanced interest is offered u/s. 12—Substitution of heading to Part 4 . Parameters to be considered by Collector in determination of award. 5. 4 Amendment of section 6—Interpretation. Declaration of intended acquisition 6. 9. “, 8. Acquisition of Land Act 1967 An Act to consolidate and amend the law relating to the acquisition of land for public works and other public purposes, and for other purposes Part 1 Preliminary 1 Short title This Act may be cited as the Acquisition of Land Act 1967. The AO dismissed the contention of the assessee stating that the issue of taxability of interest on enhanced compensation was now covered by the amended provisions of sections 56(2)(viii), 57(iv) and 145A of the Act, which was applicable w.e.f. 3―Application. [17 TH JUNE 1996] 1. Accordingly, the AO subjected 50% of the interest received on enhanced compensation to tax. 2 Commencement This Act commences on a … 295 Land Acquisition [Rev. 2. “. Compensation against such acquisition is provided to the assessee by the government. (5) The decision of the reviewer is final and is required to be given effect to by the authority of the State. Period within which an award shall be made. The assessee submitted that the interest component having been received u/s 28 of the Land Acquisition Act, was in the nature of compensation and thus eligible for exemption u/s 10(37) of the Act. 5―Conflict with other laws. 9. part. 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. Name of Act 2. - (1) Subject to the provision of Part VII of this Act, [appropriate Government] is satisfied, after considering the report, if any, made under section 5A, sub-section (2)], that any particular land is needed for a public Differences between Land acquisition act of 1894 and 2013 act Question - Major differences between Land acquisition act of 1894 and the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. Application of section 3A where there is no development approval 3C. 6. It would means that converse position i.e. [9th March, 1950.] Your email address will not be published. 2—Interpretation. Acquisition of land 3A. Compensation under the Land Acquisition Act. LAND ACQUISITION (JUST TERMS COMPENSATION) ACT 1991 - As at 23 September 2020 - Act 22 of 1991 TABLE OF PROVISIONS Long Title PART 1 - PRELIMINARY 1. 50. The Court clarified that whereas compensation given to the assessee of the land acquired would be income, the enhanced compensation/consideration becomes income by virtue of Section 45(5)(b) of the Income Tax Act. Commencement 3. Section 24 deals with the validity or lack thereof, of land acquisition proceedings initiated under the now repealed Land Acquisition Act, 1894 ("1894 Act"). Act 486 LAND ACQUISITION ACT 1960 ARRANGEMENT OF SECTIONS Section 1. 5 Amendment of section 7—Application. Land Acquisition Act 1969. 1894 v 39. Publication ofagreemcnt 23 43. Part IV. 4 CAP. Objections 5-A. Sections 39 to 42 not to apply whcre government bound by agreement 10 provide land for companies 24 44. There arises no occasion for us to deal with the issue again considering the fact that the Ld.CIT(A) has already taken note of the decision of the ITAT and applying the same deleted the addition. Interpretation: 2. In view of the above ,since the issue involved in the present already stands adjudicated by the ITAT for the impugned year in favour of the assessee, though in appeal in separate proceedings, and the Revenue has not brought to our notice any new facts which were not there before the ITAT while deciding the earlier appeal,we find that for all purposes the issue already stands adjudicated by the ITAT. it is made in the wake of taking after the system in the land acquisition act. 5. Therefore, in view of the same, the proposition laid down in Ghanshyam, HUF (supra) remains and which having been laid down by the Hon’ble Apex Court is the law of the land has to be followed by all lower authorities. The AO dismissed the contention of the assessee stating that the issue of taxability of interest on enhanced compensation was now covered by the amended provisions of sections 56(2)(viii), 57(iv) and 145A of the Act, which was applicable w.e.f. 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