MAHADEVI V. THE DEPUTY COMMISSIONER AND ORS

WP/200049/2018

AI Insights

The case involves three writ petitions filed by landowners whose lands were acquired for urban development in Kalaburagi. The petitioners challenged the tax deductions made at source from their compensation amounts by the Land Acquisition Officer (LAO) and sought directives for the remaining amounts to be deposited without deductions. The respondents argued that the tax was duly deducted and the petitioners could claim refunds by filing revised returns with the Income Tax Department. The court's decision emphasized the non-taxability of the compensation and allowed the petitioners to seek refunds through revised returns, while also directing the Assistant Commissioner to assist in the process by informing the Income Tax Department about the deductions.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 727796 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 22-04-2024
• Assessment Year: misc
• Laws Referred To: Articles 226 and 227 of the Constitution of India
• Result in Favour of: Partly Allowed
• Court: HIGH COURT
• Department Lawyers: MAYA; SHIVAKUMAR TENGLI; M THIRUMALESH
• Assessee Lawyers: SHIVANAND PATIL
• Keywords: Compensation; Land Acquisition; Tax deduction at source; Writ of Mandamus
• Section: 159/2011; 156/2011; 154/2011

Judgement Text

" - 1 - NC: 2024:KHC-K:3208 WP No. 200049 of 2018 C/W WP No. 200050 of 2018 WP No. 200051 of 2018 IN THE HIGH COURT OF KARNATAKA, KALABURAGI BENCH DATED THIS THE 22ND DAY OF APRIL, 2024 BEFORE THE HON'BLE MR. JUSTICE V SRISHANANDA WRIT PETITION NO.200049 OF 2018 (LA-RES) C/W WRIT PETITION NO.200050 OF 2018 (LA-RES) AND WRIT PETITION NO.200051 OF 2018(LA-RES) IN W.P.NO.200049 OF 2018: BETWEEN: MAHADEVI W/O CHANDRASHEPPA AGE: 65 YEARS, OCC: AGRI, R/O KOTNOOR (D) VILLAGE, TQ: & DIST: KALABURAGI …PETITIONER (BY SRI SHIVANAND PATIL, ADVOCATE) AND: 1. THE DEPUTY COMMISSIONER KALABURAGI-585101. 2. THE ASSISTANT COMMISSIONER AND THE LAND ACQUISITION OFFICER, KALABURAGI-585101. 3. THE GULBARGA URBAN DEVELOPMENT AUTHORITY, KALABURAGI-585103. Digitally signed by SHILPA R TENIHALLI Location: High Court Of Karnataka - 2 - NC: 2024:KHC-K:3208 WP No. 200049 of 2018 C/W WP No. 200050 of 2018 WP No. 200051 of 2018 BY ITS COMMISSIONER …RESPONDENTS (BY SMT. MAYA T.R., HCGP FOR R1 AND R2; SRI SHIVAKUMAR R. TENGLI, ADVOCATE FOR R3) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO ISSUE A WRIT OF MANDAMUS OR ANY OTHER ORDER OR COMMAND OF THE LIKE NATURE, DIRECTING THE RESPONDENT NO.2 TO DEPOSIT RS.26,66,406/- CONTEMPLATED TO BE RETAINED AS TAX DEDUCTION AT SOURCE BEFORE THE SENIOR CIVIL JUDGE IN LAC NO.159/2011. IN W.P.NO.200050 OF 2018: BETWEEN: 1. SHIVARAJ, S/O SHIVASHARANAPPA AGE: 54 YEARS, OCC: AGRI, R/O KOTNOOR (D) VILLAGE, TQ & DIST: KALABURAGI. 2. CHANDRAKANT S/O SHIVASHARANAPPA AGE: 48 YEARS, OCC: AGRI, R/O KOTNOOR (D) VILLAGE, TQ & DIST: KALABURAGI. 3. BASAWARAJ S/O SHIVASHARANAPPA AGE: 41 YEARS, OCC: AGRI, R/O KOTNOOR (D) VILLAGE, TQ & DIST: KALABURAGI. 4. SANGAMANATH S/O SHIVASHARANAPPA AGE: 32 YEARS, OCC: AGRI, R/O KOTNOOR (D) VILLAGE, - 3 - NC: 2024:KHC-K:3208 WP No. 200049 of 2018 C/W WP No. 200050 of 2018 WP No. 200051 of 2018 TQ & DIST: KALABURAGI. 5. GURULINGAMMA W/O SHIVASHARANAPPA AGE: 83 YEAR, OCC: HOUSEHOLD, R/O KOTNOOR (D) VILLAGE, TQ & DIST: KALABURAGI. 6. NEELAMMA W/O GURUSHANTAPPA AGE: 50 YEAR, OCC: HOUSEHOLD, R/O KOTNOOR (D) VILLAGE, TQ & DIST: KALABURAGI. 7. MAYADEVI D/O GURUSHANTAPPA AGE: 21 YEARS, OCC: STUDENT, R/O KOTNOOR (D) VILLAGE, TQ & DIST: KALABURAGI. 8. ANAND S/O GURUSHANTAPPA AGE: 25 YEARS, OCC: STUDENT, R/O KOTNOOR (D) VILLAGE, TQ & DIST: KALABURAGI. 9. KRISHNA S/O GURUSHANTAPPA AGE: 23 YEARS, OCC: STUDENT, R/O KOTNOOR (D) VILLAGE, TQ & DIST: KALABURAGI. …PETITIONERS (BY SRI SHIVANAND PATIL, ADVOCATE) AND: 1. THE DEPUTY COMMISSIONER KALABURAGI-585102. 2. THE ASSISTANT COMMISSIONER AND THE LAND ACQUISITION OFFICER, KALABURAGI-585102. - 4 - NC: 2024:KHC-K:3208 WP No. 200049 of 2018 C/W WP No. 200050 of 2018 WP No. 200051 of 2018 3. THE GULBARGA URBAN DEVELOPMENT AUTHORITY, KALABURAGI-585102. BY ITS COMMISSIONER 4. THE PRINCIPAL COMMISSIONER OF INCOME TAX, GULBARGA …RESPONDENTS (BY SMT. MAYA T. R., HCGP FOR R1 AND R2; SRI SHIVAKUMAR R. TENGLI, ADVOCATE FOR R3; SRI M. THIRUMALESH, ADVOCATE FOR R4) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO ISSUE A WRIT OF MANDAMUS OR ANY OTHER ORDER OR COMMAND OF THE LIKE NATURE, DIRECTING THE RESPONDENT NO.2 TO DEPORT OF RS.1,07,26,689/- CONTEMPLATED TO RETAINED AS TAX DEDUCTION AT SOURCE BEFORE THE SENIOR CIVIL JUDGE IN LAC NO.156/2011. IN W.P.NO.200051 OF 2018 BETWEEN: KASTURBAI, W/O AMRUTRAO BIRADAR AGE: 60 YEARS, OCC: AGRI, R/O KOTNOOR (D) VILLAGE, TQ & DIST: KALABURAGI. …PETITIONER (BY SRI SHIVANAND PATIL, ADVOCATE) AND: 1. THE DEPUTY COMMISSIONER - 5 - NC: 2024:KHC-K:3208 WP No. 200049 of 2018 C/W WP No. 200050 of 2018 WP No. 200051 of 2018 KALABURAGI-585102. 2. THE ASSISTANT COMMISSIONER AND THE LAND ACQUISITION OFFICER, KALABURAGI-585102. 3. THE GULBARGA URBAN DEVELOPMENT AUTHORITY, KALABURAGI-585102. BY ITS COMMISSIONER. …RESPONDENTS (BY SMT. MAYA T. R., HCGP FOR R1 AND R2; SRI SHIVAKUMAR R. TENGLI, ADVOCATE FOR R3) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO A ISSUE A WRIT OF MANDAMUS OR ANY OTHER ORDER OF COMMAND OF THE LIKE NATURE, DIRECTING THE RESPONDENT NO.2 TO DEPOSIT RS.22,59,321/- CONTEMPLATED TO BE RETAINED AS TAX DEDUCTION AT SOURCE BEFORE THE SENIOR CIVIL JUDGE IN LAC.NO.154/2011. THESE WRIT PETITIONS ARE COMING ON FOR PRELIMINARY HEARING IN ‘B’ GROUP THIS DAY, THE COURT MADE THE FOLLOWING: ORDER Heard Sri Shivanand Patil, learned counsel for the petitioners, learned High Court Government Pleader for respondent Nos.1 and 2, Sri Shivakumar R. Tengli, learned - 6 - NC: 2024:KHC-K:3208 WP No. 200049 of 2018 C/W WP No. 200050 of 2018 WP No. 200051 of 2018 counsel for respondent No.3 and Sri M. Thirumalesh learned counsel for respondent No.4. 2. The writ petitions are filed with the following prayer: IN W.P.NO.200049 OF 2018: “a. Issue a writ of MANDAMUS or any other order or command of the like nature, directing the respondent No.2 to deposit Rs.26,66,406/- contemplated to be retained as Tax Deduction at source before the Senior Civil Judge in LAC No.159/2011, in the interest of justice. b. Any other order or directions in the facts and circumstances of the case.” IN W.P.NO.200050 OF 2018: “a. Issue a writ of MANDAMUS or any other order or command of the like nature, directing the respondent No.2 to deport of Rs.1,07,26,689/- contemplated to retained as Tax Deduction at source before the Senior Civil Judge in LAC No. 156/2011, in the interest of justice. - 7 - NC: 2024:KHC-K:3208 WP No. 200049 of 2018 C/W WP No. 200050 of 2018 WP No. 200051 of 2018 b. Any other order or directions in the facts and circumstance of the case.” IN W.P.NO.200051 OF 2018: “a. Issue a writ of MANDAMUS or any other order of command of the like nature, directing the Respondent No.2 to deposit Rs.22,59,321/- contemplated to be retained as Tax Deduction at source before the Senior Civil Judge in LAC No.154/2011, in the interest of justice. b. Any other order or directions in the facts and circumstance of the case.” 3. The facts in brief which are utmost necessary for disposal of the writ petitions are as under: The lands of the writ petitioners are acquired for formation of layout. The compensation was determined and awarded. Out of the compensation amount, while depositing the compensation, the LAO-cum-Assistant Commissioner deducted the tax at source and deposited the remaining amount before the Civil Court. The grievance of the writ petitioners is that the compensation - 8 - NC: 2024:KHC-K:3208 WP No. 200049 of 2018 C/W WP No. 200050 of 2018 WP No. 200051 of 2018 amount is not taxable and deduction of the tax is impermissible and sought for allowing the writ petitions and requested to direct the Assistant Commissioner to pay the remaining amount as well. 4. The learned High Court Government Pleader representing the Assistant Commissioner submits that being the amount payable as the compensation, the tax is already deducted and paid into the Income Tax Department and therefore, the petitioners can file necessary returns before the Income Tax Department and obtain refund of the amount deducted at source. 5. Sri M. Thirumalesh learned counsel submits that since the compensation amount is in the account of writ petitioners, they can file the revised returns and seek for refund of the deducted tax amount payable on the compensation amount. 6. Having heard the learned counsel for the parties, this Court perused the material on record - 9 - NC: 2024:KHC-K:3208 WP No. 200049 of 2018 C/W WP No. 200050 of 2018 WP No. 200051 of 2018 meticulously. On such perusal of the material on record, the petitioners in W.P.No.200050/2018 have already filed a letter before the Income Tax Department and 60% of the compensation amount is already refunded to the petitioners and balance amount is retained by the Income Tax Department subject to the result of the writ petition. Insofar as the writ petitioners in other two writ petitions, are yet to file revised returns. 7. Since the tax is deducted at source by the Assistant Commissioner and the paid into Income Tax Department, and the compensation amount is not taxable income, the petitioners are at liberty to file revised returns and if any such revised returns are filed, the Income Tax Department shall refund the amount deducted at source by the Assistant Commissioner and deposit into the Income Tax Department on the compensation amount in accordance with law. - 10 - NC: 2024:KHC-K:3208 WP No. 200049 of 2018 C/W WP No. 200050 of 2018 WP No. 200051 of 2018 8. The time spent in these writ petitions shall be deducted for the purpose of limitation to file revised returns. 9. Further, respondent No.2/Assistant Commissioner shall also intimate the Income Tax Department about the amount deducted at source and in which accounts the same has been deposited including the LAC numbers so as to facilitate the Income Tax Department to process the revised returns to be filed by the petitioners in accordance with law. Accordingly following: ORDER i) The Writ Petitions are disposed of accordingly. ii) Pending IAs are consigned to the records. Sd/- JUDGE RSP/CT:SI List No.: 1 Sl No.: 37 "