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2019 DIGILAW 1955 (RAJ)

Murlidhar v. Competent Authority Land Acquisition

2019-07-12

PUSHPENDRA SINGH BHATI

body2019
JUDGMENT : Pushpendra Singh Bhati, J. 1. The petitioners have approached this Court claiming the following prayers:- "It is, therefore, most respectfully prayed on behalf of the petitioners that the writ petition may kindly be allowed and by an appropriate writ, order or direction:- (A) The respondent no.1 may be directed to pay to the petitioners immediately, the amount which he has deducted as TDS from the compensation amount of the petitioners agricultural land without authority of law; (B) The respondent no. 1 may be restrained from depositing the amount deducted from the compensation of the petitioners land with the Department of Income Tax since this deduction is blatant violation of the provisions of the Act of 2013 as well as the Income Tax Act, 1961." 2. Brief facts of the case as noticed by this Court are that the petitioners were having possession and ownership of agricultural land in khasra no. 458/6 situated in Village Netra, Tehsil Baori, District Jodhpur. The said land has been acquired for widening of National Highway 65, Jodhpur-Nagaur as per the provisions of Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (for short, 'the Act of 2013'). 3. The limited contention of the petitioners is that in flagrant violation of Section 96 of the Act of 2013, the respondents are charging T.D.S. upon the compensation amount. 4.1. Learned counsel for the petitioners submits that the T.D.S. amount has been deducted in the year 2018 whereas an amendment has been brought in Section 194LA of the Income Tax Act, 1961 by the Finance Act, 2017 w.e.f. 1.4.2017 published in gazette on 31.3.2017, which reads as follows:- "67. In section 194LA of the Income-tax Act, after the proviso and before the Explanation, the following proviso shall be inserted, namely:-- "Provided further that no deduction shall be made under this section where such payment is made in respect of any award or agreement which has been exempted from levy of income-tax under section 96 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013.". 4.2. Learned counsel for the petitioners, therefore, makes a limited submission that as per the second Proviso to Section 194LA of the Income Tax Act/the respondents have to do away with the T.D.S. on the compensation amount for the acquired agricultural land of the petitioners. 5. 4.2. Learned counsel for the petitioners, therefore, makes a limited submission that as per the second Proviso to Section 194LA of the Income Tax Act/the respondents have to do away with the T.D.S. on the compensation amount for the acquired agricultural land of the petitioners. 5. Learned counsel for the respondents is not in a position to refute that the amendment has been brought in Section 194LA of the Income Tax Act w.e.f. 1.4.2017. 6. After hearing the learned counsel for the parties and after perusing the material available on record and looking into the limited submission, this Court directs the respondents to take into consideration the amendment made in Section 194LA of the Income Tax Act, 1961 by the Finance Act, 2017 w.e.f. 1.4.2017 while computing T.D.S. afresh upon the compensation awarded to the petitioners. It is needless to say that if by the aforesaid exercise, T.D.S. is not made out, then the same shall not be levied and if the same has been levied unlawfully, then the same shall be refunded. The necessary decision shall be taken by the respondents within a period of three months from today. 7. The present writ petition is disposed of in the above terms. 8. Stay petition no. 10060/2019 also stands disposed of accordingly.