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TMI Blog2006 (8) TMI 165X X X X Extracts X X X X X X X X Extracts X X X X ..... filed a cheque application and a cheque for Rs. 2,87,617/- was issued after deducting the amount of Rs. 22,398/- towards income-tax. The Land Acquisition Officer filed an application to issue a cheque for Rs. 22,398/- for depositing the same as income-tax. The petitioner objected to the application of the Land Acquisition Officer contending that the property acquired was agricultural land and that he is not liable to pay income-tax from the amount of compensation awarded. The executing court overruled the objection raised by the petitioner. It was held that a statutory duty is cast upon the Land Acquisition Officer to deduct income-tax at source. The executing court relied on a decision reported in State of Kerala v. Mariyamma [2006] 280 ITR 225 (Ker); [2005] 2 KLT 587 and ordered a cheque for Rs. 22,398/- to the Land Acquisition Officer to be deposited as income-tax and also directed the Land Acquisition Officer to issue a tax deduction certificate. Challenging that order, this civil revision petition is filed. 2. Since the question arising for consideration in this C.R.P. is deduction of income-tax at source notice was issued to senior standing counsel for the Income-tax Departm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cantonment board and which has a population of not less than ten thousand according to the last preceding census of which the relevant figures have been published before the first day of the previous year; or (b) in any area within such distance, not being more than eight kilometres, from the local limits of any municipality or cantonment board referred to in item (a), as the Central Government may, having regard to the extent of, and scope for, urbanisation of that area and other relevant considerations, specify in this behalf by notification in the Official Gazette." Whether a particular land is an agricultural land or not is to be determined with reference to the definition given in section 2(14)(iii)(a) and (b) of the Income-tax Act and not with reference to the tenure of the land shown in the land revenue records. A combined reading of section 194LA and the definition of agricultural land given under section 2(14)(iii)(a) and (b) makes it abundantly clear that the competent authority to decide whether any compensation awarded is exigible to income-tax is the Income-tax Officer. So it is clear that the remedy available to the party is either to approach the competent author ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is bound to deduct income-tax. The proper time for deposit as section 192(1A) of the Income-tax Act read with rule 30(1) of the Income-tax Rules the tax deducted shall be remitted to the account of the Central Government in any branch of the RBI or the SBI or any authorised bank in accordance with law within one week from the last day of the month in which the deduction is made. In case of deduction by or on behalf of the Government, tax is to be deposited on the same day without any challan (book adjustment). 9. Section 203A of the Income-tax Act casts a duty to get a tax deductor's accounting number or tax collector's accounting number. It is submitted that every person deducting tax at source under sections 192 to 196D shall obtain a tax deductor's accounting number or tax collector's accounting number (TAN for short). It is also pointed out that the time limit for submitting an application for obtaining TAN is within one month from the end of the month in which the tax was deducted and the application for TAN shall be made in Form No. 49B. It is also submitted that the application is to be submitted before the agencies authorised by the Government, i.e., NSDL ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the last day of the month in which the deduction is made. 11. Regarding the present practice of collecting tax Shri Mohan C. Menon, learned senior Government Pleader has submitted that at present the income-tax deducted are deposited to the Central Government account by using treasury challans (in triplicate) presented to concerned treasuries under the head of account 8658-00-112-IT. It is further submitted that one copy of the challan is being forwarded to the accounts officer of the Income-tax Department and details of amount collected and furnished to the Accountant General, Kerala. It is further submitted that intra Governmental settlement of the income-tax amount are done in between Accountant General, Kerala, and concerned Central Government Department. It is also submitted that one copy of the treasury challan in each and every remittances made under the Income-tax Act are being furnished to the Income-tax Zonal Office by the treasury branches. The learned senior Government Pleader has made available a circular issued by the Thrissur District Collector to the Land Acquisition Officers working under him regarding the procedure to be followed regarding deduction of tax at so ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are not even told the fact that income-tax is deducted from the compensation amount awarded to them. Section 203 of the Income-tax Act enjoins that the officer deducting that tax is bound to issue a certificate for tax deducted. Section 203(1) of the Income-tax Act reads as follows: "203. Certificate for tax deducted. (1) Every person deducting tax in accordance with the foregoing provisions of this Chapter shall, within such period as may be prescribed from the time of credit or payment of the sum, or, as the case may be, from the time of issue of a cheque or warrant for payment of any dividend to a shareholder, furnish to the person to whose account such credit is given or to whom such payment is made or the cheque or warrant is issued, a certificate to the effect that tax has been deducted. and specifying the amount so deducted, the rate at which the tax has been deducted and such other particulars as may be prescribed." Rule 30 of the Income-tax Rules deals with time and mode of payment to the Government account of tax deducted at source. Rule 31 of the Income-tax Rules deals with certificate of tax deducted at source or tax paid under sub-section (1A) of section 192. Rule ..... X X X X Extracts X X X X X X X X Extracts X X X X
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