MOVALIYA BHIKHUBHAI BALABHAI Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) By this petition under Article 226 of the Constitution of India, the petitioner has challenged the communication dated 9th February, 2015 issued by the Income Tax Officer, TDS-1, Surat as well as the action of the second respondent of deducting and depositing an amount of Rs.2,07,416/- towards 10% TDS from the total amount of interest and further seeks a direction to the second respondent to pay the amount of TDS, that is, Rs.2,07,416/- to the petitioner.

(2.) The petitioner is the original claimant in Land Reference Case No.1737/1999 which came to be decided by the learned Principal Senior Civil Judge, Junagadh by an award dated 23rd March, 2011 whereby the reference was partly allowed and additional compensation was awarded at the rate of Rs.41.60 per square metre for the irrigated lands and Rs.33.28 per square metre for non-irrigated lands along with other benefits under the Land Acquisition Act, 1894 (hereinafter referred to as the "Act of 1894").

(3.) Pursuant to the award passed by the Reference Court, the second respondent - Executive Engineer, Junagadh Irrigation Scheme Division submitted a calculation sheet which showed an amount of interest of Rs.20,74,157/- in Column No.15 thereof and the amount of TDS to be deducted as per Section 194A was shown to be Rs.2,07,416/- in Column No.18 thereof,. The petitioner made an application in Form No.13 to the Income Tax Department on 9th January, 2015 under Section 197(1) for deciding the tax liability of interest and to issue a certificate as to NIL tax liability. By the impugned communication dated 9th February, 2015 (wrongly typed as 09.02.2014 in the letter as per paragraph 5 of the affidavit-in-reply), the application has been rejected on the ground that the interest amount on the delayed payment of compensation and enhanced value of compensation is taxable as per the provisions of Section 57(iv) read with Sections 56(2)(viii) and 145A(b) of the I.T. Act. Being aggrieved, the petitioner has filed the present petition.