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TMI Blog2013 (4) TMI 550X X X X Extracts X X X X X X X X Extracts X X X X ..... , the tax deduction liability is on the Competent Authority of Metro Railways Kolkata who makes the payment to the person receiving compensation. For the reasons set out above, as also bearing in mind entirety of the case, the grievance of the assessee in principle but in effect remit the matter back to the file of the AO for fresh adjudication in accordance with the law, by way of a speaking order and after giving a fair and reasonable opportunity of hearing to the person concerned, i.e. Competent Authority of Metro Railways Kolkata. - IT Appeal Nos. 49 to 53 ( Kol. ) of 2012 - - - Dated:- 26-3-2013 - Pramod Kumar AND Mahavir Singh, JJ. For the Appellant S.S. Gupta. For the Respondent K.N. Jana. ORDER:- Pramod Kumar, Accountant Member - These five appeals pertain to the same assessee, involve common issues, pertain to the same appellant, against the same consolidated order passed by the Assessing Officer, are set out on common set of facts and were heard together. Learned representatives before us fairly agree that whatever is decided in one appeal will apply mutatis mutandis to other four appeals as well. It is in this backdrop, and as a matter of convenienc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y acquisition of land, no tax deductions at source, as required under the provisions of Section 194 LA, were made from these payments. It was also noted that a payment of Rs. 1,68,41,828 was made in the relevant previous year itself. It was in this backdrop that the proceedings were initiated by the Assessing Officer TDS to examine appellant's compliance with the tax withholding provisions under the Act. In response to the Assessing Officer's requisition to show cause as to why action under section 201 r.w.s. 194 LA not be taken against the appellant, it was explained by the assessee that so far as the appellant was concerned, the appellant had to comply with the orders passed by the Competent Authority appointed under the Metro Railways (Construction of Works) Amendment Act, 1987, but the actual disbursement of compensation amount is being made by the said Competent Authority to the beneficiaries. It was submitted that the orders of the Competent Authority were binding on the appellant as much as court orders are, and, therefore, the appellant could not have deducted tax at source from the said disbursements to the Competent Authority. None of these submissions, however, impressed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct TDS out of compensation amount because it is the Metro Railway who is responsible to make the payment of compulsory acquisition of the land through the Competent Authority, and it is the Metro Railway who will be owning the land after compulsory acquisition of land. Thus the appellant fails to get relief on this issue. 6. The appellant is not satisfied by the stand so taken by the CIT(A) and is in further appeal before us. 7. We have heard the rival contentions, perused the material on record and duly considered factual matrix of the case in the light of the applicable legal position. 8. Section 194 LA, which is at the core of dispute in appeal before us, provides as follows: Payment of compensation on acquisition of certain immovable property 194LA. Any person responsible for paying to a resident any sum, being in the nature of compensation or the enhanced compensation or the consideration or the enhanced consideration on account of compulsory acquisition, under any law for the time being in force, of any immovable property (other than agricultural land), shall, at the time of payment of such sum in cash or by issue of a cheque or draft or by any other mode, whichever ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ata, in the present context) in such manner as may be prescribed with the Competent Authority within such time as may be fixed by the Competent Authority". Section 14(2) then provides that " .the Competent Authority shall, on behalf of the Central Government, pay the amount to the person or persons entitled thereto". Section 15 provides that the " the Competent Authority shall have, for the purposes of this Act, all the powers of a Civil Court .", while Section 16 provides for the mechanism of appointment of Competent Authority, by way of Gazette Notification, and that "a person shall not be qualified for appointment as a competent authority unless he is holding, or has held, a judicial office, not lower in rank than that of a subordinate judge". It is thus clear that the competent authority is a statutory authority, through appointed for Metro Railway Kolkata, and the payment to the beneficiary, which are in the nature of compensation for compulsory acquisition of property, is made only by the Competent Authority, Metro Railways Kolkata. So far as payment by Dy FA and CAO, Metro Railways Kolkata, to Competent Authority Metro Railways Kolkata, are concerned, these are in the nat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er alia, provides that where reassessments or recomputations are being made in consequence to, or to give effect to findings or directions contained in an order under section 254, such an exercise can be completed at any time. Therefore, irrespective of the time limit set out in Section 201(3), an order under section 201 can be raised at any time as long as the same is done to give effect to "findings or directions contained" in an order, inter alia, under section 254. 12. In the light of the above analysis, let us revert to the facts of the present case once again. Earlier in this order, we have given a finding that the tax deduction at source obligations were to be fulfilled at the point of time when Competent Authority of Metro Railways Kolkata made payments to the actual beneficiaries whose properties are acquired, and, therefore, the tax deduction at source obligations did not arise when payments were made by the Dy FA and CAO to the Competent Authority. It is on this basis that the appeal has been decided on merits, and this finding was the basis of the decision on this issue. Therefore, the findings so given were necessary to decide the issue before us. It is this kind of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under section 201 r.w.s. 194 LA at the point of time of payment of compensation to the actual beneficiaries by the Competent Authority of Metro Railways, Kolkata. 16. Learned counsel for the assessee has also raised issue that in certain cases the payment was for compensation of acquiring agricultural land, and, therefore, the provisions of Section 194 LA did not come into play at all. Given the fact that the matter is, in effect, only going back to the file of the Assessing Officer for fresh exercise, it is not really necessary to deal with this issue. Learned counsel, however, is at liberty to take up any issue before the Assessing Officer in connection with ascertainment of tax withholding obligations under section 201(1) r.w.s. 194 LA, if and when so required. 17. Learned Departmental Representative has also invited our attention to a judgment of Hon'ble MP High Court in the case of State of MP v. Parwatibai (128 Taxman 751) wherein it is held that when payment is made by the Court, the tax is not required to be deducted by the Court but by the person who actually acquires the land i.e. Land Acquisition Office or the Collector who, to quote the words of Their Lordships, "ha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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