TUHI RAM Vs. LAND ACQUISITION COLLECTOR

JUDGEMENT

(1.) AS similar questions of law and facts arise for consideration, this order shall also govern the disposal of the following petitions : Civil Writ Petitions Nos, 5562, 5477, 6018, 6019, 5476, 7457 and 7456 of 1988 ; C. W. P. Nos. 4617, 11494, 11490, 6868, 6585, 6584, 6869 of 1989 ; C. W. P. Nos. 4450, 8424, 8420, 6351, 1545, 1544, 9758, 11513, 5410 and 649 of 1990 ; and C. W. P. Nos. 10752, 10751, 10750, 11495, 13683, 5130, 1608, 14237, 13776, 13408, 12887, 13761, 14068, 15582, 13394, 13395, 13396, 13397, 13398, 7820, 13399, 13400, 13401, 14891, 12804, 12805, 12806, 12807, 12808, 12809, 12810, 12811, 12812, 12813, 12814, 12815, 12821, 12822, 13030, 12280, 12442, 10987, 10988, 6186, 649, 11413, 6206, 13422, 13511, 14456, 14429, 13039, 13042, 13043, 14745, 14752, 14177, 9819, 8279, 10100, 7823, 8042, 8039, 7842, 8038, 7822, 7821, 7816, 7819, 7818, 7817, 7829, 10555, 10556, 10557, 10558, 10559, 10560, 11898, 13291, 13292, 13293, 13294, 13295, 13296, 13297, 13298, 13299, 13300, 13301, 13302, 13303, 13304, 15134, 14574, 14390, 14392, 14389, 14369, 14370, 14368, 3446, 3445, 7814, 5586, 5585, 5584, 5583, 5582, 5581, 5580, 5579, 1671, 14391, 7816, 16043, 15135, 15314, 15917, 16989, 16730, 16731, 13776, 15556. 16240, 16481, 16900, 16918, 17219, 17101, 17311, 16600, 17350, 17351, 17352, 17353, 17354, 17387, 16270, 17557 and 17561 of 1991.

(2.) EXTENSIVE agricultural land was acquired under the Land Acquisition Act after due process of law. The Land Acquisition Collector gave his award assessing the market value of the land. On a reference under Section 18 of the Land Acquisition Act, the District Judge enhanced the compensation. The claimants/landholders were awarded solatium and also interest calculated in terms of Sections 23 (1a) and 28a, as inserted by Amending Act No. 68 of 1984. The award made by the District Judge was challenged in appeal before this court and the compensation and interest payable to the claimants have been finally determined by the various judgments passed in Letters Patent appeals. The claimants received compensation. They were, however, not required to pay any income-tax on the amount so received as market value of their land as also on the inter est. Now, notices like annexure P4 have been issued to those landowners whose lands were acquired as aforesaid. By such notices, they have all been informed that a certain amount was required to be deducted on account of income-tax on the amount of interest so received by them. All such persons/claimants were required to deposit the amount mentioned in such cases towards the amount of income-tax chargeable on the amount of interest so received by them. These notices apparently have been issued in terms of Section 194a of the Income-tax Act, 1961 (Act No. 43 of 1961) (for short "the Act"), as amended by the Finance (No. 2) Act, 1967, effective from April 1, 1967. All the petitioners in these writ petitions have challenged these notices on the grounds which we shall presently consider and have prayed that these notices be quashed. They also pray that Clause (iii) in Sub-section (14) of Section 2 of the Act be declared ultra vires. A further prayer is to declare that they are not liable to pay any tax on the amount received as compensation as capital gains on the acquisition of agricultural land and if any amount has been deducted at source on that account, it be refunded.

(3.) BEFORE proceeding to consider the various arguments raised in support of these petitions, we may notice a few relevant provisions of the Act.