MUKESH KUMAR AGRAWAL V. UNION OF INDIA

WPT/150/2019

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The case involves Mukesh Kumar Agrawal, the petitioner, who challenged the deduction of income tax at source from the compensation awarded for his agricultural land, which was compulsorily acquired. The petitioner sought to quash the tax deduction, claiming it was arbitrary and violated various legal provisions including Article 265 of the Constitution and Section 96 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. The respondents included the Union of India, the State of Chhattisgarh, and various authorities related to land acquisition and income tax. The main legal contention was whether the tax deducted at source from the compensation was lawful and whether the petitioner was entitled to a refund.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 741212 (HC-CHHATTISGARH)
• Appeal Type: Others
• Pronouncement Date: 17-03-2022
• Assessment Year: misc
• Laws Referred To: Article 265 of the Constitution of India, Section 96 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, Section 10(37) of the Income Tax Act, Section 194LA of the Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: AMIT CHAUDHARI; AMIT KUMRANI; RICHA SHUKLA
• Assessee Lawyers: ROMIR GOYAL
• Keywords: Agricultural property; Compensation; Income tax deduction; Land Acquisition; Refund
• Section: 194LA; 96; 10(37); 265

Judgement Text

"1 NAFR HIGH COURT OF CHHATTISGARH, BILASPUR WPT No. 150 of 2019 Mukesh Kumar Agrawal S/o Pawan Kumar Agrawal Aged About 41 Years R/o Jabbal And Sons Gali, Nehru Nagar, M.Wd 3, Bilaspur, Chhattisgarh-495001. Petitioner, District : Bilaspur, Chhattisgarh ---- Petitioner Versus 1. Union Of India Through The Secretary, Department Of Revenue, Ministry Of Finance, North Block, New Delhi-110001. 2. State Of Chhattisgarh Through Competent Authority (Land Acquisition) And Sub Divisional Officer (Revenue), Bilaspur, Chhattisgarh., District : Bilaspur, Chhattisgarh 3. Project Director National Highway Authority Of India, Project Implementation Unit, Bilaspur, Chhattisgarh., District : Bilaspur, Chhattisgarh 4. Commissioner Of Income Tax Aaykar Bhawan, Bharti Nagar Bilaspur, Chhattisgarh., District : Bilaspur, Chhattisgarh 5. Commissioner Of Income Tax Tds, Aaykar Bhawan, Arera Hills, Bhopal, Madhya Pradesh., District : Bhopal, Madhya Pradesh ---- Respondents For Petitioner : Ms. Romir S. Goyal, Advocate For Res./Income Tax : Mr. Amit Chaudhari and Mr. Amit Kumrani Advocates For State : Ms. Richa Shukla, Dy. G.A. ----------------------------------------------------------------------------------------------- Hon'ble Shri Parth Prateem Sahu, Judge Order On Board 17 /03/2022 1. The petitioner has filed this writ petition challenging the action of the respondents in deducting income tax at source from the amount of compensation calculated to be awarded to the petitioner in view of the acquisition of the land which was the agriculture property and sought following reliefs :- 2 “10.1 Issue an appropriate writ(s), order(s) or direction(s), quashing / setting aside the action of deduction of tax at source against compensation / award amount disbursed upon compulsory acquisition of land, and holding and declaring the same being ultra vires, arbitrary, illegal, irrational, unreasonable to the provisions of the Article 265 of the Constitution of India, and in violation of the provisions of Section 96 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, Section 10(37), 194LA of the Income Tax Act, and therefore, the amount so deducted and retained illegally be directed to be returned to the petitioner, along with the interest. 10.2 Issue any other writ(s), order(s) or direction(s) as this Hon'ble Court may deem just and fair under the circumstances of the case; 10.3 Impose cost upon the respondents.” 2. Counsel for respondent submits that for getting refund of the tax deducted aggrieved person is required to submit his Income Tax Return and only thereafter refund of Income Tax can be made in accordance with law. He also submits that petitioner has already filed Income Tax Return for Assessment Year 2019-2020 claimed refund of the tax deducted at source after adjustment of regular tax liability. 3. This submission of learned counsel for the respondent that tax deducted at source on the amount of compensation under Land Acquisition Act is claimed for refund is not disputed by learned counsel for the petitioner. She submits that tax deducted at source is refunded to the petitioner. 3 4. Heard learned counsel for the parties, in view of the submission made by the counsel for the respondents that the tax deducted at source from the amount of compensation awarded against the land acquisition of agricultural property has already been refunded to petitioner, nothing survives in this writ petition for further adjudication. 5. Accordingly, the writ petition stands disposed of. Sd/- (Parth Prateem Sahu) Judge Kamde "