LAWS(KER)-2014-6-291

JOSE P SIMON Vs. DISTRICT COLLECTOR

Decided On June 03, 2014
Jose P Simon Appellant
V/S
DISTRICT COLLECTOR Respondents

JUDGEMENT

(1.) THE above batch of writ petitions are with respect to the acquisition of land, initiated by the Government, to implement Kochi Metro Rail Project, which implementation is the duty of the Company, Kochi Metro Rail Corporation, the 3rd respondent. Admittedly, the acquisition proceedings were initiated under the Land Acquisition Act, 1894, (for short, "L A Act") but, however, at the stage of enquiry contemplated under Section 11 of the L A Act, many of the land owners, arrived at a negotiated settlement with the District Level Purchase Committee, constituted by the Government by G.O(MS) No.419/2011/RD dated 15.11.2011. The District Level Purchase Committee, having entered into negotiation; many of the land owners agreed to a price as arrived at on negotiation, thus enabling the Collector to pass award under sub -section (2) of Section 11 of the L A Act. The Collector having passed such award, the amounts due, as per the procedure established, is paid by the 3rd respondent to the land owner, through the Revenue Department. The dispute raised is with respect to the tax deduction at source mandated under 194 LA of the Income Tax Act, 1961.

(2.) THE learned Counsel appearing for the petitioners relies on Ext.P3 judgment of this Court as also Exts.P4 and P5. Ext.P3 is by a Division Bench and other two by two learned Single Judges of this Court. It is contended on behalf of the petitioners that the principle upon which the law declared, insofar as tax deduction at source, under Section 194 LA, is squarely applicable in the present case also. Section 194 LA talks of compulsory land acquisition and mandates tax deduction at source for the compensation paid in lieu of such compulsory acquisition. The specific words, "compulsory acquisition", employed in the section would take, any agreed sale, away from the rigor of deduction at source provided under Section 194 L A. It is urged that there is no mandate on the revenue officials to deduct tax at source, when paying compensation, under a negotiated settlement, as per the award passed by the Collector under Section 11(2); other than that imposed by Section 194 IA.

(3.) SRI .Jaiju Babu, the learned Senior Counsel, appearing for the 3rd respondent specifically places on record, that the Kochi Metro Rail Corporation never took a stand that the deduction has to be made under Section 194 LA. The learned Senior Counsel asserts that according to the 3rd respondent, the Division Bench judgment produced at Ext.P3 covers the issue. The acquisition proceeded with and later specifically settled on negotiation and concluded as per an award passed under sub -section (2) of Section 11 of the L A Act, is on the basis of the agreed price, on mutual consent and cannot at all be treated as a compulsory acquisition attracting Section 194 LA. The specific assertion is made since by an affidavit in W.P(C) 4209/2014, the petitioner therein, had averred that submission was made before Court on behalf of the 3rd respondent that Section 194 LA is applicable. No such submission was ever made, reiterates the Senior Counsel and takes umbrage at the averment made; which according to him, definitely is on a misapprehension.