Wa/1539/2016 Of The Commissioner Of Iincome Tax v. Vivekanandan

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HON'BLE THE ACTING CHIEF JUSTICE MR. MOHAN M.SHANTANAGOUDAR &THE HONOURABLE MR.JUSTICE THOTTATHIL B.RADHAKRISHNAN TUESDAY, THE 9TH DAY OF AUGUST 2016/18TH SRAVANA, 1938 WA.No. 1539 of 2016 IN WP(C).12569/2016 --------------------------------------------AGAINST THE JUDGMENT IN WP(C) 12569/2016 of HIGH COURT OF KERALA DATED 23-05-2016 APPELLANT(S)/ADDL.3RD RESPONDENT :--------------------------------- THE COMMISSIONER OF INCOME TAX (TDS) C.R.BUILDINGS, I.S.PRESS ROAD, KOCHI-682 018. (THE 3RD RESPONDENT WAS ERRONEOUSLY SHOWN AS COMMISSIONER OF INCOME TAX, THIRUVANANTHAPURAM IN THE WRIT PETITION). BY ADVS.SRI.CHRISTOPHER ABRAHAM, INCOME TAX DEPT. SRI.K.M.V.PANDALAI, INCOME TAX DEPARTMENT RESPONDENTS/PETITIONERS & RESPONDENTS 1 AND 2: --------------------------------------------- 1. VIVEKANANDAN RAJITH VIHARL, PRAVACHAMBALAM, NEMOM P.O., THIRUVANANTHAPURAM-695 001. 2. PONNAMMA -DO- -DO- 3. THE DISTRICT COLLECTOR COLLECTORATE, CIVIL STATION, KUDAPPANAKUNNU, THIRUVANANTHAPURAM-695 001. 4. LAND ACQUISITION OFFICER KARAMANA-KALIYIKKAVILA SPECIAL UNIT, COLLECTORATE AND SPECIAL TAHSILDAR (L.A.), SPVL, THIRUVANANTHAPURAM-695 001. R1 & R2 BY SRI.L.MOHANAN R3 & R4 BY Sr.GOVERNMENT PLEADER SRI.V.TEK CHAND THIS WRIT APPEAL HAVING BEEN FINALLY HEARD ON 09-08-2016,THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ami/ MOHAN M. SHANTANAGOUDAR, Ag. C.J. &THOTTATHIL B. RADHAKRISHNAN, J. ------------------------------------------------------- W.A.No.1539 of 2016 -------------------------------------------------- Dated this the 9[th] day of August 2016 J U D G M E N T Mohan M.Shantanagoudar, Ag.C.J. This writ appeal is filed against the common judgment ofthe learned Single Judge dated 23.5.2016 passed in W.P.(C)No.12569 of 2016 and connected cases. 2.Respondents 1 and 2 had lost their lands in theacquisition under the provisions of the Land Acquisition Act,1894. However, before passing the award under the said Act, theRight to Fair Compensation and Transparency in LandAcquisition, Rehabilitation and Resettlement Act, 2013(hereinafter referred to as 'the Act, 2013') came into force.Consequently, proceedings were continued under the Act, 2013and the compensation was determined as per the provisions of theAct of 2013. Having found that the concerned authorities willdeduct income tax from the compensation to be paid to the landlosers, the land losers approached this Court in W.P.(C) No.12569of 2016 and connected cases, which came to be allowed by theimpugned judgment. 3.We find that the judgment of the learned Single Judgeis just and proper in as much as Section 96 of the Act, 2013, clearly discloses that no income tax or stamp duty shall be leviedon any award or agreement made under this Act, except underSection 46. It is not in dispute that Section 46 of the Act, 2013, isnot applicable to the facts of this case. Hence, it is amply clearthat as per Section 96 of the Act, 2013, exemption is providedfrom levying income tax and stamp duty. In an identical case, aDivision Bench of this Court in W.A. No.1422 of 2015 has alreadyconcluded that income tax is not liable to be deducted from thecompensation payable to similarly placed persons. The learnedSingle Judge, following the dictum laid down in W.A. No.1422 of2015 and observing the provisions of Section 96 of the Act, 2013,has allowed the writ petitions directing the authorities to paycompensation to the petitioners, without deducting any amounttowards income tax or stamp duty. Since the impugned judgment is just and proper, theappeal fails and the same is dismissed accordingly. Sd/- MOHAN M.SHANTANAGOUDAR ACTING CHIEF JUSTICE Sd/- THOTTATHIL B.RADHAKRISHNAN JUDGE ami/9.8.2016 //True copy// P.A. to Judge