RISAL SINGH Vs. UNION OF INDIA

JUDGEMENT

(1.) This petition seeks quashing of TDS certificates issued by the Land Acquisition Collector, Sonepat after deducting the tax at source under Section 194LA of the Income-tax Act, 1961 (for short, "the Act").

(2.) The case of the petitioners is that their agricultural land has been acquired in pursuance of notifications dated November 9, 1992, under Section 4 and November 6, 1993, under Section 6 of the Land Acquisition Act, 1894 and award in respect thereof was passed on November 5, 1995. While disbursing the compensation, the Collector illegally made deduction of tax at source and remitted the same to the Income-tax Department which is permissible only in the case of non-agricultural land.

(3.) In reply on behalf of the Income-tax Department, it has been stated that alternative remedy is available to the petitioners to seek refund after getting assessment done. The Collector was bound to make deduction and was, thus, justified in doing so.