Tds on compulsory acquisation of land u/s 194la

Dattatreya (Practicing Chartered Accountant)   (31 Points)

18 October 2017  

Proviso to Section 194LA has been inserted wef  01.04.2017 for no deduction of TDS on Payment of Comepnsation where such payment is made in respect of any award or agreement which has been exempted from levy of income-tax under section 96 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (LARR ACT 2013) 

Now in our case the Payment of compneastion is made by Karnataka Industrial Area development Board (KIADB) ( The Authority which acquires the land). The calculation of compensation is done per LARR Act 2013. I have submitted the letter to KIADB Quoting the section 194LA for non dedcution of TDS on compensation Even then also KIADB is deducting TDS at 10 % on the compensation. is there any way for me to get the comensation without getting deduction of TDS and whether the KIADB is liable to pay the TDS amount to us which they have dedcuted worngly?