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No Income Tax or Stamp duty shall be levied on Compensation for Land Acquisition: Kerala HC [Read Judgment]

Kerala High Court-Tax Exemption-taxscan

In a recent Judgment of Kerala High Court has upheld the Single bench decision that, Income Tax or Stamp duty shall not be levied on compensation for Land Acquisition under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013.

While upholding Single bench judgment of Kerala High Court, the division bench comprising of Acting Chief Justice Mohan M. Shantanagoudar and Justice Thottathil B Radhakrishnan observed that, the decision of Single Judge is just and proper in as much as Section 96 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 clearly discloses that no income tax or stamp duty shall be levied on any award or agreement made under this Act, except under Section 46. It is not in dispute that Section 46 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 is not applicable to the facts of this case. Hence, it is amply clear that as per Section 96 of the Act, 2013, exemption is provided from levying income tax and stamp duty.

While dismissing the appeal, the Court also relied on S.Sreekumar vs The District Collector has already concluded that income tax is not liable to be deducted from the compensation payable to similarly placed persons. The bench also allowed the writ petitions directing the authorities to pay compensation to the petitioners, without deducting any amount towards income tax or stamp duty.

Read the full text of the Judgment below.

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