9911796707
TMI Blog1992 (3) TMI 11X X X X Extracts X X X X X X X X Extracts X X X X ..... ted March 1, 1987, to the then Revenue Secretary requesting him to issue instructions to all the officers concerned with land acquisition to deduct income-tax on payment of interest and to follow the provisions as laid down under section 194A and other provisions of the Act. In Paragraph 2 of that D.O. letter, it is stated that while paying interest, income-tax is deductible at the rates in force during that financial year with effect from April 1, 1975, if the amount exceeded Rs. 1,000. Basing on that D.O. letter, evidently, the principal secretary has addressed all the District Collectors and the Collector, West Godavari District, Eluru, and issued instructions to his subordinate officers by his letter dated March 21, 1988, with regard ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rned Government Pleader for Civil Supplies appearing for the petitioner in the above revision petitions submitted that the learned Subordinate judge has committed an error in treating the award made under the Land Acquisition Act as a decree passed by the civil court and failed to see that the decision of the Supreme Court in All India Reporter's case [1961] 41 ITR 446, has no application to the facts of this case. In the decision of the Supreme Court referred to above, the amount related to compensation for wrongful termination of employment, arrears of salary, salary due for the period of notice, interest and costs, less the withdrawals on salary account. The learned judges held that having regard to the nature of the decree, it is diffic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... modify the same by enhancing the compensation amount. Thus, virtually, the decree passed by the civil court in a reference under section 18 of the Land Acquisition Act amounts to either confirmation or modification of the award of the Land Acquisition Officer with regard to the compensation payable under the Land Acquisition Act. Thus the decree passed by the civil court under section 18 of the Land Acquisition Act either confirming or modifying the award of the Land Acquisition Officer does not lose its character as an award of compensation. 1, therefore, hold that the decision of the Supreme Court referred to above has no application to the facts of this case, especially because, their Lordships of the Supreme Court observed in the cours ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Supreme Court in Rama Bai's case [1990] 181 ITR 400, has set at rest the conflict of decisions among some High Courts on the above issue. The effect of the decision of the Supreme Court referred to above is that on the enhanced compensation, for land compulsorily acquired under the Land Acquisition Act, awarded by the court on a reference under section 18 of the Land Acquisition Act, interest is payable to the claimants. If so, section 194A of the Act empowers the person who is responsible for making the payment to deduct income-tax. But the direction given in the D. 0. A letter dated March 1, 1987, of the Commissioner of Income-tax stating that while paying interest, income-tax is deductible at the rates in force during that financ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nts are liable to pay income-tax or not. Therefore, the respondents-claimants in each of the civil revision petitions are directed to file, within a month from today, an affidavit or a statement in writing declaring whether the estimated total income due to them in each execution petition when spread over for the period between the date of delivery of possession of the land from him/her till the date of deposit will be less than the minimum liable to income-tax. On such declaration or affidavit being filed, the revision petitioner Land Acquisition Officer in each civil revision petition shall be liable to deposit the interest which is withheld by him while depositing the compensation amount under each of the execution petitions within six w ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
