DISTRICT COLLECTOR Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) This is a writ petition preferred by the District Collector, Pathanamthitta, as also the Special Tahsildar LA(General), Pathanamthitta, seeking refund of the amounts paid to the Income Tax Department by way of tax deduction at source (TDS), while effecting payment of compensation amounts to the Sub Court, Thiruvalla, pursuant to the award that was passed in land acquisition proceedings that were initiated and resulted in the acquisition of properties belonging to the 3rd and 4th respondents. It is pointed out that, although an award was passed and the amounts payable to respondents 3 and 4 deposited before the Sub Court, Thiruvalla, in subsequent proceedings before this Court, the award itself was set aside and the acquisition proceedings held invalid on account of the fact that the award was passed more than two years after the date of publication of the declaration under Section 6 of the Land Acquisition Act. The petitioners would point out that, pursuant to the judgment of the High Court, they had withdrawn the amounts deposited before the Sub Court, Thiruvalla and paid it back to the requisitioning authority. In respect of the amounts that had been paid to the Income Tax Department by way of T.D.S., they had preferred an application before the 1st and 2nd respondents which came to be rejected by Ext. P5 order of the 2nd respondent.

(2.) A counter affidavit has been filed on behalf of the 2nd respondent wherein it is stated that the T.D.S. payment was made in accordance with the provisions of section 203 of the Income Tax Act. Once the payment was made to the Income Tax Department, then the amount would be adjusted towards the tax liability of the deductee. Accordingly, if there was to be a refund of the amounts paid, it was incumbent upon the deductee to file a return of income with the jurisdictional income tax authority enclosing the T.D.S. certificate issued by the deductor, and it is only thereafter that the Income Tax Department can process the refund application preferred by the deductee.

(3.) I have heard the learned Government Pleader Smt. Lilly K.T., for the petitioners and Sri. Jose Joseph, the learned Standing counsel appearing on behalf of the respondents 1 and 2 and Sri. Joseph Kodianthara, the learned counsel appearing on behalf of the 3rd and 4th respondents.