SHANKAR Vs. UNION OF INDIA

JUDGEMENT

(1.) IN this writ petition the petitioner seeks quashing of a circular issued by the Dy. CIT to the Land Acquisition Collector, directing him to deduct tax at source at the time of making payment of interest to the petitioner on account of enhancement of compensation. It is also prayed that the Collector may be restrained from deducting the tax at source in terms of said circular.

(2.) ACCORDING to the petitioner, since the amount, of interest payable on account of delay in payment of enhanced compensation is not liable to be taxed, the Land Acquisition Collector cannot be asked to deduct tax at source.

(3.) ACCORDINGLY , the writ petition is dismissed and the rule is discharged. The interim order stands vacated. However, the petitioner is granted liberty to approach the concerned authority for spreading over the income to the period for which payment came to be made so that the income for the purpose of assessing tax for the relevant assessment years could be computed. No order as to costs.