Judgment :- Petitioners property was acquired and an award was passed on 24-11-1999 fixing the compensation at Rs.3,85,468/-. As per Section 194 L of the Income Tax Act 10% of the above compensation amount should have been withheld by the Land Acquisition Authority towards Income Tax and only the rest of the amount should have been disbursed. By inadvertence, the entire compensation amount had been disbursed to the petitioner. Thereafter, the Land Acquisition Officer issued Ext.P1 notice dated, 12-8-2003 directing refund of 10% of the amount and also Surcharge on the above amount. The above notice issued by the Land Acquisition Officer is under challenge at the instance of the petitioner. 2. Heard the learned learned counsel for the petitioner, the learned Government Pleader and the learned Standing Counsel for the Income Tax Department. 3. In view of Sec. 194 L which was then in the Statute, from 1-6-1999. 10% of the amount of compensation awarded by the Tribunal should have been withheld towards income tax and the balance amount alone should have been disbursed to the party. Section 194 L reads: “Any person responsible for paying to a resident any sum being in the nature of compensation or the enhanced compensation or the consideration or the enhanced consideration on account of compulsory acquisition, under any law for the time being in force, of any capital asset shall at the time of payment of such sum in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct an amount equal to ten per cent of such sum as income-tax on income comprised therein: Provided that no deduction shall be made under this Section where the amount of such payment or, as the case may be, the aggregate amount of such payments to a resident during the financial year and does not exceed one hundred thousand rupees”. Provided further than no deduction shall be made under this section from any payment made on or after the 1st day of June, 2000”. In view of the above provision of law, the Land Acquisition Officer should have withheld 10% of the compensation amount towards income tax and the remaining amount alone should have been disbursed. But by oversight, the entire amount was disbursed. It was by an omission to take note of Sec.194 L of the Income Tax Act. In view of the above provision of law, the Land Acquisition Officer should have withheld 10% of the compensation amount towards income tax and the remaining amount alone should have been disbursed. But by oversight, the entire amount was disbursed. It was by an omission to take note of Sec.194 L of the Income Tax Act. Later on 12-8-2003, Ext.P1 notice was issued demanding the return of 10% of the compensation amount and surcharge. The main argument advanced by the learned counsel for the petitioner was that the Land Acquisition Officer had no authority to make a demand for the return of the amount and a notice can be is such only by the Income Tax Department, even if any amount was payable to the Income Tax Department. 4. Section 194L was in the Income Tax Act for a period from 1-6-1999 till 1-6-2000. In view of the proviso added to Sec.194L, no deduction need be made from the amount with effect from 1-6-2000. Admittedly, no amount was withheld in pursuance to the above provision the entire amount was disbursed. When the notice was issued for return of the amount in view of the proviso which has come into effect from 1-6-2000, the amount need not be recovered also. In view of the above provision, I do not think that it would be competent for the Land Acquisition Officer to demand return of the amount already disbursed. But it would be the option of the Income Tax Department to recover the amount towards income tax or not. Hence I think it just and proper to quash Ext.P2 notice reserving the right to the Income Tax Department to proceed against the petitioner if they choose to do so. In the result Ext.P2 notice is set aside. The Land Acquisition Authorities shall inform about the failure from their part to recover the amount to the Income Tax Department and the Income Tax Department shall be at liberty to proceed against the petitioner in accordance with law, if they choose to do so.