Dismissing the appeals of the revenue the Court held that Compulsory acquisition of land for projects and paying sums to illegal squatters for their rehabilitation is not a case of compulsory acquisition from owners of land.The possession of those persons was unauthorized and illegal and they were not the owners of the land on which they had squatted or built their illegal hutments and were trespassers. Therefore, there was no question of the land being acquired by the assessee. accordingly not liable to deduct tax at source.( AY. 2000-01 to 2009 -10)
CIT v. Mumbai Metropolitan Regional Development Authority. (2018) 408 ITR 111 /258 Taxman 164/ 304 CTR 776/ 170 DTR 97 (Bom) (HC) Editorial: SLP of revenue is dismissed CIT (TDS) v. Mumbai Metropolitan Regional Development Authority ( 2019) 263 taxman 365 ( SC)
S. 194L : Deduction at source – Compensation on acquisition of capital asset -Compulsory acquisition of land for projects and paying sums to illegal squatters for their rehabilitation is not a case of compulsory acquisition from owners of land- Not liable to deduct tax at source .[ S.194LA, 201, 201A ]