MUHAMMED HAJI Vs. UNION OF INDIA

JUDGEMENT

(1.) PETITIONER was the owner in possession of 3. 15 Ares of land and a building thereon in Kalamassery Municipality. The said land along with the building were acquired for the purpose of Adhoc Augmentation of Kochi Water Supply Scheme of Kerala Water Authority, under the Kerala Land Acquisition Act. An award was passed determining the compensation. Petitioner received 80% of the compensation and according to him, on receiving the award notice for receiving the balance amount of Rs. 1,88,298/- when he approached the third respondent he was informed that a communication from he second respondent was received directing to deduct income tax equal to 10% on payment of compensation on acquisition of capital asset and a surcharge at 10%.

(2.) EXT. P2 is a notice issued by the Income Tax Officer. As per Section 194 L of the Income Tax Act as introduced with effect from 1. 6. 1999 the person responsible for paying compensation is to make a deduction at the rate of 10%. Petitioner challenges Ext. P2. The prayer made in this writ petition is to issue a writ of certiorari or other appropriate writ or order and quash Section 194 of Income Tax Act and Ext. P1 communication and to direct the 3rd respondent not to deduct any amount as income tax from the award amount of the petitioner in award number 162/1999 and release the award amount to him forthwith.

(3.) PETITIONER has not urged any valid grounds for challenging the proviso to Section 194 L of the Income Tax Act. The deduction was made by the Officer strictly in compliance with law. No grounds are made out to quash Ext. P2 either. The writ petition is dismissed.