THE COMMISSIONER OF INCOME TAX, TDS AND ORS. Vs. CHIEF ACCOUNTS OFFICER, BRUHAT BANGALORE MAHANAGAR PALIKE

JUDGEMENT

(1.) FOR discharging of its functions i.e., expansion of existing roads and construction of underpasses, etc. Bruhath Bengaluru Mahanagara Palike ['BBMP' for short'] has to acquire lands. To achieve the purpose, it may resort to compulsory acquisition of lands under the provisions of Land Acquisition Act, 1894 or any such other Act relating to compulsory acquisition of land or take land under Section 14B of the Karnataka Town and Country Planning Act, 1961 ['KTCP Act' for short], where the land owner may voluntarily surrender his land free of cost and handover possession of such lands and in lieu thereof, Certificate of Development Rights ['CDR' for short] are issued by the Authority, whereby, the owner would be granted CDR rights in the form of additional floor area, which shall be equal to 1 1/2 times of area of land surrendered.

(2.) IN the present case, the land has been taken under Section 14B of KTCP Act and not by way of any compulsory acquisition. As such, there was no cash transaction or payment made by BBMP to the land owner.

(3.) AN appeal filed by the respondent -BBMP was dismissed by the Commissioner of Income Tax (Appeals), which was challenged by BBMP before the Tribunal and by a detailed and reasoned order dated 14.11.2014, the appeal of BBMP has been allowed. Aggrieved by the same, Revenue has filed these appeals raising the following substantial question of law: - -