Negotiated Basis v. Asst.commissioner Of Income Tax(2008 (4) Klt 892

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR.JUSTICE P.R.RAMACHANDRA MENON WEDNESDAY, THE 26TH DAY OF JUNE 2013/5TH ASHADHA, 1935 WP(C).No. 16022 of 2013 (C)---------------------------- PETITIONER(S): -------------------------- 1. ELSY PAUL, AGED 67 YEARS, W/O.K.V.PAUL, KANYANAPPILLIL HOUSE, VYTTILA P.O., ERNAKULAM DISTRICT. 2. ALIYAMMA VARGHESE, AGED 72 YEARS, W/O.LATE VARGHESE, UDAYANAMPARAMBIL HOUSE, PANCODE, ERNAKULAM. 3. CHANDRA MOHAN, AGED 56 YEARS, S/O.VARGHESE, KAKKASSERIYIL HOUSE, KADAYIRUPPU, KOLENCHERY, ERNAKULAM. 4. NADARAJAN P.V., AGED 68 YEARS, S/O.VELAYUDHAN, ANITHA BHAVAN, (IRUPPAKALAYIL) PERUMBAVOOR. BY ADV. SRI.MATHEWS K.PHILIP RESPONDENT(S):---------------------------- 1. THE DISTRICT COLLECTOR, ERNAKULAM, CIVIL STATION, KAKKANADU, ERNAKULAM - 682 030. 2. SPECIAL TAHSILDAR (LA), KOCHI REFINARIES LIMITED, NORTH FORT GATE, THRIPUNITHURA - 682 301. 3. THE COMMISSIONER OF INCOME TAX (TDS), OFFICE OF THE COMMISSIONER OF INCOME TAX, KOCHI, C.R.BUILDINGS, I.S.PRESS ROAD, KOCHI - 682 018. R1 & R2 BY SR.GOVERNMENT PLEADER SMT. SOBHA ANNAMMA EAPEN R3 BY ADV. SRI.JOSE JOSEPH, SC, INCOME TAX THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 26-06-2013, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No. 16022 of 2013 (C) ----------------------------------------- APPENDIX PETITIONER(S)' EXHIBITS;----------------------------------------- EXHIBIT P1. TRUE COPY OF THE NOTICE UNDER SECTION 9(3) OF THE LAND ACQUISITION ACT. EXHIBIT P2. TRUE COPY OF THE RECEIPT ISSUED BY THE 2ND RESPONDENT. EXHIBIT P3. TRUE COPY OF THE JUDGMENT IN WA 2243/2008. RESPONDENT(S)' EXHIBITS: ------------------------------------------ N I L /TRUE COPY/ P.S.TO JUDGE Kss P.R.RAMACHANDRA MENON,J. - - - - - - - - - - - - - - - - - - - - - W.P.(c) No. 16022 OF 2013 - - - - - - - - - - - - - - - - - - - - - - - - - - Dated this the 26[th] day of June, 2013 J U D G M E N T The petitioners have approached this Court with the following prayers: i) Issue a writ of mandamus or any otherappropriate writ, order or direction compelling therespondents 1 to 2 to disburse the entire saleconsideration with respect to the petitioners'property having an extent of 8 Ares in Sy.No.257/16of Puthencruz village, Kunnathunadu Taluk which isbeing purchased for the expansion of Kochi OilRefineries Ambalamughal, without deducting anyamount as tax under Section 194 LA of the IncomeTax Act. ii). Issue such other writ, orders which aredeemed fit and proper in the interest of justice. 2. Petitioners say that they own land at Puthencruz Village and their property was notified for acquisition under Section 4(1) of the Land Acquisition Act for the purpose of expansion ofKochi Oil Refineries, Ambalamugal. It appears that in thoseproceedings, District Level Purchase Committee was appointedand that the land owners had an option to sell their land on W.P.(C) No.16022/2013 negotiated basis. 3. In so far as the petitioners are concerned, they optedfor negotiated sale and accordingly, price was fixed. Thepetitioners now apprehend that the respondents are proposingto deduct 10% of the purchase value due under Section 194 LAof the Income Tax Act. It is contended that such a deduction isillegal in view of the law laid down by this Court in the judgmentinInfo Park Kerala v. Asst.Commissioner of Income Tax(2008 (4) KLT 892). 4. A copy of the aforesaid judgment has been produced asExt.P3. In that judgment, this Court interpreted the provisions ofSection 194 LA and held that the said provision is applicable onlyin cases where lands are compulsorily acquired by theGovernment. 5. Heard the learned Government Pleader appearing forrespondents 1 and 2 and also the standing counsel appearing forthe 3[rd] respondent. 4. A copy of the aforesaid judgment has been produced asExt.P3. In that judgment, this Court interpreted the provisions ofSection 194 LA and held that the said provision is applicable onlyin cases where lands are compulsorily acquired by theGovernment. 5. Heard the learned Government Pleader appearing forrespondents 1 and 2 and also the standing counsel appearing forthe 3[rd] respondent. 6. As stated already, in so far as the petitioners areconcerned, they opted for negotiated sale of the land. If that beso, the issue is fully covered by the judgment referred to above W.P.(C) No.16022/2013 and tax under Section 194 LA of the Income Tax Act is not liableto be deducted from the sale consideration. In that view of the matter, this writ petition is disposed of, clarifying that the respondents 1 and 2 are liable to disbursethe sale consideration for the land sold by the petitioners onnegotiated basis, without deducting any amount as tax underSection 194 LA of the Income Tax Act. Sd/- P.R.RAMACHANDRA MENON, JUDGE. dpk. /True copy/ PS to Judge.