national high-speed railway company: no compensation tax for high-speed train land: Hc | Bombay News

MUMBAI: The Bombay High Court has ruled that income received by a woman whose land in Thane was acquired by the National High Speed ​​Rail Corporation for the Mumbai-Ahmedabad high-speed rail project through private negotiations and a deed of sale were exempt from income tax. “The company had already deducted the TDS – in 2019 – which it should not have deducted,” the HC bench of judges SV Gangapurwala and MG Sewlikar said on Thursday.
The HC ordered the railway company to issue a correction and state that it had wrongly deducted the tax and said that the income tax department would then process the correction statement for the refund of the amount of the tax. Thane resident Seema Patil had challenged the company’s action by deducting income tax at source from the compensation paid for the acquisition of the land in Bhiwandi, Thane. His lawyer said that in such a compulsory acquisition for a public project, the amount received was not taxable because the Right to Fair Compensation Act 2013 created an exemption. But the rail company said it was taxable because it was a private transaction and therefore not a mandatory acquisition under the law.
The HC judgment said, “It appears that the public notice has been issued for the acquisition of land by direct purchase and private negotiations by the office of the Subdivisional Officer, Bhiwandi Division, Bhiwandi for the implementation Project Implementation, Mumbai-Ahmedabad High Speed ​​Rail Project. ”
The notice states that the compensation will be fixed by giving an amount increased by 25% of the total compensation under the law.
“Undoubtedly, the land was acquired for a public project. A political decision has been made by the state government under its government resolution of May 12, 2015 for the acquisition of the property through private negotiations and purchases for the implementation of public projects. The methodology is also provided. The calculation of the compensation must be in accordance with the provisions of the law aimed at expediting the acquisition for the implementation of the project. If the parties do not agree with negotiations and direct purchase, compulsory acquisition must be resorted to under the provisions of the law,” the HC said.

Jose P. Rogers