The Bombay High Court has held that income tax cannot be deducted from an amount given by way of compensation for property the National Hi-Speed Rail Corporation Ltd (NHSRCL) acquired for the Mumbai-Ahmedabad bullet train project.

A division bench of Justices S V Gangapurwala and M G Sewlikar passed its order on Thursday, on a petition filed by one Seema Patil, who sought a refund of the income tax deducted at the source by the NHSRCL after it acquired her property at Bhiwandi in Thane district for the project.