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TMI Blog2018 (3) TMI 1934X X X X Extracts X X X X X X X X Extracts X X X X ..... ucted as income tax deducted at source - HELD THAT:- Admittedly agricultural land was acquired and the relevant record in that regard is produced. The learned counsel for the Income Tax Department submitted that such amount is not received by it and in view of that circumstance the other possible defences available to the Income Tax Department need not be considered in the present matter - Income Tax Department has placed reliance on the observations made by the Apex Court in the Dr. Sham Lal Narula [ 1964 (4) TMI 10 - SUPREME COURT] and he submitted that at least on the interest amount income tax is deductable. As the income tax was not credited in the account of the Income Tax Department as per the submissions made and as there is new ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... titioners. Shri. M.M. Nerlikar, Assistant Government Pleader, for respondent Nos.1 and 2. Shri. Alok Sharma, Standing Counsel, for respondent No.3. JUDGMENT (Per T.V. Nalawade, J.): 1) Rule, rule made returnable forthwith. Heard both sides for final disposal. 2) The petition is filed under Articles 226 and 227 of the Constitution of India for giving direction to the respondents to release 10 per cent amount deducted from the compensation amount awarded to the petitioners under the provisions of the Land Acquisition Act by the Special Land Acquisition Officer. This amount is deducted as income tax deducted at source. 3) Agricultural land of the petitioners admeasuring 2H 60 R is acquired for irrigation projec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ituated from the city, village area. The return was filed for the year 2011-2012. Along with the application for refund given to the Income Tax Department the petitioners had supplied copy of decision given by this Court at this Seat in Writ Petition No.2115/2011 in which this Court had made it clear that in respect of agricultural land such deduction is not possible. They have also produced copy of representation showing that the Income Tax Officer had informed to them that they have not received income tax in the present matter by one-line process from the Special Land Acquisition Officer. 6) The Special Land Acquisition Officer has filed reply affidavit and he has contended that the aforesaid tax was deposited by him in the Treasury a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onsidered the provision of section 96 of the Act No.30 of 2013 (Land Acquisition Act). The provision of section 194LA of the Income Tax Act was also considered. The Andhra Pradesh High Court considered the circulars issued by the Department in the past and the recent circular issued by the Central Board of Direct Taxes (CBDT) dated 25-10-2016. The decision is rendered in view of the provision of 2013 Land Acquisition Act viz section 96 showing that income tax cannot be deducted on the awarded amount. Even prior to incorporation of section 96 in the Land Acquisition Act, the provision of section 194LA of the Income Tax Act provided that if compensation is payable in respect of agricultural land which is compulsorily acquired, the authority i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ount which is wrongly deducted by them from the compensation amount which was payable to the petitioners. In the result, following order :- 11) The writ petition is allowed. The amount deducted by the Special Land Acquisition Officer from the compensation amount shown in the award prepared by the Special Land Acquisition Officer as income tax is directed to be returned by the respondent Nos.1 and 2 to the petitioners with interest at the rate of 15 per cent per annum and the interest will be chargeable from the date of deduction i.e. 20-7-2010 till the date of realisation. The amount is to be returned within three months from the date of this order. Liberty to the State to go against Income Tax Department if the state has paid the amount ..... X X X X Extracts X X X X X X X X Extracts X X X X
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