SHEENA BENNY V. THE COMMISSIONER OF INCOME TAX (TDS)

WP(C)/35071/2016

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The writ petition filed by Sheena Benny sought a direction to the respondents to pay compensation without deducting any tax under the Income Tax Act, 1961. The case was influenced by a previous judgment of the Kerala High Court in W.A. No. 1536 of 2016, which upheld that no income tax or stamp duty should be levied on any award or agreement made under the Act, 2013, except as provided under Section 46. The court found that Section 46 was not applicable to the facts of this case, leading to the decision that the compensation should be paid without any tax deductions.

• Counselvise Citation: [2016] 140 COUNSELVISE.COM (IT) 699356 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 02-11-2016
• Assessment Year: misc
• Other Referred Cases: W.A. No. 1536 of 2016, W.P.(C) No.12194 of 2016, W.A.No. 1422 of 2015
• Laws Referred To: Income Tax Act, 1961, Act, 2013
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: K M V PANDALAI; V K SHAMSUDHEEN
• Assessee Lawyers: S ABDUL SALAM
• Keywords: Compensation; Income Tax Act; Land Acquisition; Tax Deduction; Section 96 exemption
• Section: 46; 96; 194-LA

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR.JUSTICE A.M.SHAFFIQUE WEDNESDAY, THE 2ND DAY OF NOVEMBER 2016/11TH KARTHIKA, 1938 WP(C).No. 35071 of 2016 (H) ---------------------------- PETITIONER(S): ------------- SHEENA BENNY, W/O. BENNY KURIAKOSE, 'PADAYATTIL VEEDU', THURAVOORKARA, ALUVA, ERNAKULAM. BY ADV. SRI.S.ABDUL SALAM RESPONDENT(S): -------------- 1. THE COMMISSIONER OF INCOME TAX (TDS), C.R.S BUILDING, I.S PRESS ROAD, KOCHI - 682 018, ERNAKULAM. 2. THE DISTRICT COLLECTOR, COLLECTORATE, CIVIL STATION, KUDAPPANAKUNNU, THIRUVANANTHAPURAM-695001. 3. THE LAND ACQUISITION OFFICER, (SPECIAL TAHSILDAR L.A), KARAMANA KALIYIKKAVILA SECIAL UNIT, COLLECTORATE, CIVIL STATION, KUDAPPANAKUNNU, SPVL, THIRUVANANTHAPURAM-695001. R1 BY SRI.K.M.V.PANDALAI, SC R2 & 3 BY GOVERNMENT PLEADER SRI.V.K.SHAMSUDHEEN THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 02-11-2016, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: PJ WP(C).No. 35071 of 2016 (H) ---------------------------- APPENDIX PETITIONER(S)' EXHIBITS ----------------------- P1 PHOTOCOPY OF THE JUDGMENT IN WA NO. 1536/2016 DATED 08.8.2016 OF THIS HON'BLE COURT. P2 THE TRUE COPY OF THE PROCEEDINGS L.A.C NO. 154/2015 DATED 06.4.2015 OF THE THIRD RESPONDENT. RESPONDENT(S)' EXHIBITS ----------------------- NIL. / TRUE COPY / P.S. TO JUDGE PJ A.M. SHAFFIQUE, J. =============== W.P. (C) No. 35071 of 2016 ================== Dated this, the 2nd day of November, 2016 J U D G M E N T This writ petition is filed seeking for a direction to the respondents to pay compensation without deducting any tax under the Income Tax Act, 1961. The issue is already covered by judgment of this Court in W.P.(C) No.12194 of 2016 and connected cases, wherein a Division Bench of this Court held as under:- “3. It is seen that the very same issue has been considered by a learned Division Bench of this Court in W.A. No. 1536 of 2016, whereby the judgment of the learned single Judge in W.P.(C) No. 12484 of 2016 and connected cases has been upheld. The learned Division Bench in the judgment dated 08.08.2016 in W.A. No. 1536 of 2016 has held thus: “3. We find that the judgment of the learned single Judge is just and proper in as much as Section 96 of the Act, 2013 clearly discloses that no income tax or stamp duty shall be levied on any award or agreement made under this Act, except under Section 46. It is not in dispute that Section 46 of the Act, 2013 is not applicable to the facts of W.P(C) No.35071/16 -:2:- this case. Hence, it is amply clear that as per Section 96 of the Act, 2013, exemption is provided for levying income tax and stamp duty. In an identical case, a Division Bench of this Court in W.A.No. 1422 of 2015 has already concluded that income tax is not liable to be deducted from the compensation payable to similarly placed persons. The learned single Judge, following the dictum laid down in W.A. No. 1422 of 2015 and observing the provisions of Section 96 of the Act, 2013, has allowed the writ petitions directing the authorities to pay compensation to the petitioner, without deducting any amount towards income tax or stamp duty.” In the light of the above, the legal position now stands clarified that in view of Section 96 of the Act, 2013, the deduction towards income tax cannot be made from the compensation payable to the land owners. Therefore, these writ petitions are disposed of clarifying the position as above and directing that the compensation be disbursed to the petitioners without deducting any amount towards income tax.” 2. Having regard to the aforesaid finding, there will be a direction to the respondent authority to release the amount paid W.P(C) No.35071/16 -:3:- under the 2013 Act, without deducting any tax under Section 194- LA. Writ petition is disposed of as above. Sd/- A.M. SHAFFIQUE, JUDGE Rp2/11/2016 //True Copy// P.S to Judge "