Allowed

M.R.Madhavan Nair v. the District Collector

Kerala HC6 Sept 2016WP(C)/12190/2016

Case brief

AI extract

What is this about?

The Court held that compensation payable to land owners under the 2013 Land Acquisition Act is exempt from income tax deduction. Relying on Section 96 of the Act and prior judgments, the Court directed respondents to disburse the full compensation amount without levying tax under Section 194-LA of the Income Tax Act.

What did the court decide?

Direction to respondent authorities to release the compensation amount paid under the 2013 Act without deducting any tax under Section 194-LA.

M.R.Madhavan Nair Vs the District Collector — Income Tax | Kerala HC (2016)

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IN THE HIGH COURT OF KERALA AT ERNAKULAM

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PRESENT:

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THE HONOURABLE MR.JUSTICE A.M.SHAFFIQUE

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TUESDAY, THE 6TH DAY OF SEPTEMBER 2016/15TH BHADRA, 1938

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WP(C).No. 12190 of 2016 (W)

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PETITIONER(S):

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M.R.MADHAVAN NAIR, AGED 72 YEARS, S/O.RAMAN PILLAI, SUPRIYA (MANAYARATHALA VEEDU), PALLICHAL, NEMON (P.O.), THIRUVANANTHAPURAM - 695 020.

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BY ADVS.SRI.G.P.SHINOD SRI.RAM MOHAN G. SRI.GOVIND PADMANAABHAN SRI.AJIT G.ANJARLEKAR

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RESPONDENT(S)/RESPONDENTS:

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1. THE DISTRICT COLLECTOR, COLLECTORATE, CIVIL STATION, KODAPPANAKKUNNU, THIRUVANANTHAPURAM - 695 005.

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2. SPECIAL TAHSILDAR (LA), KARAMANA - KALIYIKKAVILA SPL. UNIT, COLLECTORATE,THIRUVANANTHAPURAM - 695 005.

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3. COMMISSIONER OF INCOME TAX (TDS), OFFICE OF THE COMMISSIONER OF INCOME TAX, KAWDIAR, THIRUVANANTHAPURAM - 695 004.

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R1 & R2 BY GOVERNMENT PLEADER SRI.P.K.SHAMSUDDIN R3 BY ADVS. SRI.CHRISTOPHER ABRAHAM, SC SRI.K.M.V.PANDALAI, INCOME TAX DEPARTMENT

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THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 06-09-2016, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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msv/

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WP(C).No. 12190 of 2016 (W)

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APPENDIX

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PETITIONER(S)' EXHIBITS

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EXT.P1 A TRUE COPY OF THE NOTICE DATED 09/11/2015 ISSUED BY THE SECOND RESPONDENT TO THE PETITIONER UNDER SECTION 9(3) OF THE LAND ACQUISITION ACT. EXT.P2 A TRUE COPY OF THE CONSENT DATED 31/08/2015 EXECUTED BY THE PETITIONER AGREEING FOR THE RATE OF RS.11,00,000/- FOR THE LAND. EXT.P3 A TRUE COPY OF THE JUDGMENT DATED 18/01/2016 PASSED BY THIS HONOURABLE COURT IN W.A.NO. 1422 OF 2015. RESPONDENT(S)' EXHIBITS: -----------------------EXT.R3(a): TRUE COPY OF JUDGMENT DTD. 9TH SEPTEMBER 2015 IN WP(C) NO.21478/2015 OF THIS HON'BLE COURT. //TRUE COPY//

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P.S.TO JUDGE

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Msv/

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**A.M.SHAFFIQUE, J * * * * * * * * * * * *** W.P.C.No.12190 of 2016

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Dated this the 6^th day of September 2016

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J U D G M E N T

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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

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under:

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“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:

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“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.

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W.P.C.No.12190/2016

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It is not in dispute that Section 46 of the Act, 2013 is not applicable to the facts of 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.”

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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.”

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W.P.C.No.12190/2016

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Having regard to the aforesaid finding, there will be a direction to the respondent authority to release the amount paid under the 2013, Act, without deducting any tax under Section 194-LA.

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(sd/-)

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(A.M.SHAFFIQUE, JUDGE)

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jsr

M.R.Madhavan Nair v. the District Collector

Case brief

What is this about?

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M.R.Madhavan Nair v. the District Collector

Case brief

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