RANA PRATAP SINGH Vs. LAND ACQUISITION OFFICER

JUDGEMENT

(1.) Heard the learned Counsel for the parties. A writ petition had been filed in this Court being W.P.No. 29923/97 which was disposed of by this Court on 29th September, 1997 with the following order:-

(2.) I have heard the learned Counsel for Income-tax department as well. My attention has been drawn to a judgment of the Supreme Court in Bikram Singh vs. Land Acquisition Collector which shows that the controversy is no longer res integra and the matter has already been decided by the Apex Court. The Supreme Court was confronted directly with the question with which this Court at present is confronted. The Supreme Court was of the opinion that although the interest accumulated on the compensation is subject to income tax but it does not empower the Officers concerned to make deductions at source. Going by the mandate of the judgment of the Supreme Court it becomes clear that the compensation along with the interest is a revenue receipt exigible to income tax under Section 4 of the Income-tax Act; however Section 194-A of the Act has no application in the matter and there can be no deduction at source of the amounts in question.

(3.) With these observations this revision is allowed. The order passed by the learned Judicial Officer is set aside and he is directed to disburse the amount without further delay. No costs.