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RE Related Laws & New Developments

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  • Re : RE Related Laws & New Developments

    Bombay HC says refund by builder to buyers under RERA order not liable to TDS

    Several individuals who between 2015 and 2016 had booked flats in a real estate project at Malad (west) had sought orders from HC for recovery of arrears under a recovery warrant of 2018 passed by the Maharashtra Real Estate Regulatory Authority (MahaRERA) against the builders.
    MUMBAI: The Bombay high court recently directed a builder to refund amounts to flat buyers based on a March order without making any deduction of tax at source (TDS).

    The HC bench of Justices SJ Kathawalla and Milind Jadhav passed the order.

    Several individuals who between 2015 and 2016 had booked flats in a real estate project at Malad (west) had sought orders from HC for recovery of arrears under a recovery warrant of 2018 passed by the Maharashtra Real Estate Regulatory Authority (MahaRERA) against the builders.

    In March 2021, via a consent term order, the builder agreed to pay Rs 2.75 crore through instalments to the petitioners. But in their July 2021 installment, 10 per cent was deducted from the amount as TDS on the amount of interest under the recovery warrant, which the petitioners said was not permissible in law.

    The petitioning-buyers' counsel Subit Chakrabarti said the refund was in the form of compensation or a judgment debt while senior counsel Zal Andhyarujina for the builders submitted that the deduction was based on the provision of section 194A of the Income Tax Act, but later after analyzing the law said the refund was as compensation and out of the purview of the section invoked and hence, has no objection to paying the deducted amount back to the petitioners.

    The HC too said the refund was akin to a judgment debt and cannot be liable to TDS.







    Bombay HC says refund by builder to buyers under RERA order not liable to TDS, Real Estate News, ET RealEstate (indiatimes.com)

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    • Re : RE Related Laws & New Developments

      Mutation doesn't give property ownership right: Supreme Court

      A bench of Justices M R Shah and Aniruddha Bose said an entry in revenue records does not confer title on a person whose name appears in record-of-rights.
      NEW DELHI: The Supreme Court has reiterated that mutation of property in revenue records neither creates nor extinguishes the title to a property and the title of a property can only be decided by a competent civil court.

      A bench of Justices M R Shah and Aniruddha Bose said an entry in revenue records does not confer title on a person whose name appears in record-of-rights.

      “Entries in the revenue records or jamabandi have only “fiscal purpose”, i.e., payment of land revenue, and no ownership is conferred on the basis of such entries. It is further observed that so far as the title of the property is concerned, it can only be decided by a competent civil court,” the court said.

      “As per the settled proposition of law, mutation entry does not confer any right, title or interest in favour of the person and the mutation entry in the revenue record is only for the fiscal purpose.

      As per the settled proposition of law, if there is any dispute with respect to the title and more particularly when the mutation entry is sought to be made on the basis of the will, the party who is claiming title/right on the basis of the will has to approach the appropriate civil court/court and get his rights crystalised and only thereafter on the basis of the decision before the civil court necessary mutation entry can be made,” the bench said.









      Mutation doesn't give property ownership right: Supreme Court, Real Estate News, ET RealEstate (indiatimes.com)
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