TDS u/s 194LAA not applicable on issuance of TDR in lieu of compensation: Bombay HC stays demand and penalty orders

The High Court of Judicature at Bombay stayed tax-demand and penalty orders under Section 194LAA of the Income Tax Act regarding tax deduction at source on compensation paid via TDR (term deposit receipt). The court held that issuance of TDR in lieu of compensation did not trigger TDS under 194LAA since it is not a payment of consideration for transfer of immovable property. The decision provides relief to taxpayers receiving non-cash compensation forms and highlights the importance of examining payment nature for TDS applicability.