BIKRAMJEET SOOD Vs. STATE OF PUNJAB

JUDGEMENT

(1.) This order will dispose of CWP Nos.16549, 16580, 16581 and 16583 of 2010, as the issue involved in all the petitions is same.

(2.) In CWP No.16549 of 2010, prayer is for direction to the Land Acquisition Collector to release the amount illegally deducted as Tax Deducted at Source (TDS) out of compensation due to the petitioner as per provisions of the Land Acquisition Act, 1894.

(3.) Case of the petitioner is that his agricultural land has been acquired, for which compensation was determined, which did not attract any tax under the Income Tax Act, 1961 (for short, the Act). Inspite of this, tax was deducted under Section 194LS of the Act without determining the question whether tax was payable. This Court in judgment dated 11.1.2010 in Risal Singh v. Union of India [2010] 321 ITR 251 considered the matter and held that without determining the question whether land acquired was other than agricultural land, tax at source could not be deducted. Accordingly, direction was issued to the Income Tax Department to refund the amount to the Collector, who in turn will first determine whether property acquired was agricultural land or otherwise and whether tax at source was liable to be deducted or not and if tax was not liable to be deducted, the amount deducted from the land owner will be returned.