AMMINI KUTTAPPAN V. UNION OF INDIA

WP(C)/23439/2014

AI Insights

The case involves Ammini Kuttappan Kuttappan, the petitioner, who contested the deduction of tax at source from the compensation awarded under the Land Acquisition Act, 1984. The petitioner argued that the compensation was negotiated and agreed upon with the District Level Purchase Committee, thus should not be subject to tax deduction at source. The court referenced a previous decision (W.P(C) No.5607/2014) which supported the petitioner's stance. The government, represented by the Standing Counsel for Income Tax, acknowledged the possibility of a refund if the deduction had already been made, and confirmed that if the award was negotiated and final, no deduction should be applied.

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 722409 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 03-09-2014
• Assessment Year: misc
• Other Referred Cases: W.P(C) No.5607/2014
• Laws Referred To: Land Acquisition Act, 1984, Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH
• Assessee Lawyers: B PREMNATH; K K ELIAS
• Keywords: Land Acquisition; Refund application; Tax deduction at source; Negotiated price
• Section: 194-IA

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR.JUSTICE K.VINOD CHANDRAN WEDNESDAY, THE 3RD DAY OF SEPTEMBER 2014/12TH BHADRA, 1936 WP(C).No. 23439 of 2014 (D) ---------------------------- PETITIONER(S): --------------------- AMMINI KUTTAPPAN KUTTAPPAN, PADMALAYAM, VADAYAMPPADI P.O CHOONDY, ERNAKULAM PIN- 682 308 BY ADVS.SRI.B.PREMNATH (E) SRI.K.K. ELIAS RESPONDENT(S): -------------------------- 1. UNION OF INDIA, MINISTRY OF FINANCE REPRESENTED BY ITS SECRETARY DEPARTMENT OF REVENUE, CENTRAL SECRETARIAT NORTH BLOCK, NEW DELHI -110 001 2. INCOME TAX OFFICER WARD - 2(2) KOCHI R BY SRI.JOSE JOSEPH, SC, FOR INCOME TAX THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 03-09-2014, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No. 23439 of 2014 (D) --------------------------------------- APPENDIX PETITIONERS EXHIBITS: EXT.P1 COPY OF THE AWARD NOTICE ISSUED TO THE PETITIONER IN L.A.C NO. 6-2013 DTD.28.5.13 EXT.P2 COPYOF THE ACKNOWLEDGMENT OF THE RETURNS OF THE PETITIONER ISSUED BY THE 2ND RESPONDENT DTD.4.6.14 E XT.P3 COPY OF THE JUDGMENT IN W.P .C NO. 16365 OF 2014 DTD. 27.6.14 RESPONDENTS EXHIBITS: NIL // TRUE COPY // P.A TO JUDGE. SB K. VINOD CHANDRAN, J. ===================== W.P.(C) No. 23439 of 2014 - D ====================== Dated this the 3rd day of September, 2014 J U D G M E N T The petitioner has filed the above writ petition on the ground that no tax deduction at source can be made from the amounts awarded as per the Award passed under the Land Acquisition Act, 1984, since the Award is passed on negotiation with the District Level Purchase Committee constituted under the Act. The issue is covered in favour of the petitioner by a decision in W.P(C) No.5607/2014 and connected cases. 2. However, the learned Standing Counsel, Government of India (Taxes) would raise an apprehension as to whether the deduction has already been made, in which event, the petitioner's remedy would be to file a refund application before the authority as provided under the Income Tax Act, 1961. It is further contended that this Court has only interdicted tax deduction at source, when the amounts awarded are at an amount fixed on negotiation. W.P.(C) No. 23439 of 2014 - D 2 3. If no deduction has been made as of now, and the award is passed at a negotiated price, then the aforesaid judgment would apply squarely to the petitioner. The disbursing authority shall hence verify the records to ensure that the awards were passed only under negotiations between the District Level Purchase Committee and the land owners. The crucial aspect to be looked into would be the finality of such award without any scope for challenge by the land owner under the Land Acquisition Act. If the award is one such, then no tax deduction at source need be effected. Further if tax deduction is already made the petitioner; on the principle laid down in the aforesaid judgment, could apply for refund. It is made clear that, if consideration exceeds Rs.50,00,000/-, then necessarily, tax deduction at source would have to be made under Section 194 IA of the Income Tax Act, 1961. Writ petition disposed of. Sd/- K. VINOD CHANDRAN, JUDGE SB "