SANT RAM Vs. UNION OF INDIA

JUDGEMENT

(1.) THIS petition filed under article 226 of the Constitution prays for issuance of direction to the respondents to refund a sum of Rs. 2,19,779, which has been deducted by the Executive Engineer P. W. D. (Water Supply and Sanitation Division, Gurgaon respondent No. 3, as tax at source (TDS) while, disbursing the payment of enhanced compensation against

(2.) THE brief facts of the case are that in the year 1994 the agricultural land of the petitioners was acquired by the State award No. 3 was passed granting compensation to the petitioners. They filed reference under s. 18 of the Land 1998. Respondent No. 3 deposited the enhanced compensation in the Executing Court, Gurgaon, however, a sum of Rs. of Rs. 8,79,116 as tax under the provisions of s. 194A r/w s. 194LA of the IT Act, 1961 (for brevity, "the Act").

(3.) IT appears to be well -settled that under s. 194A of the Act, TDS could be deducted from the interest realised from enhanced compensation because it is regarded as revenue receipt. A similar petition came up for our consideration in at (2009) 227 CTR (P&H) 260 : (2009) 31 DTR (P&H) 192 - -Ed.]. After discussing the relevant provision of s. 194LA of the Act and the expression of "agricultural land" as defined in s. 2(14) (iii)(a) and (b) of the Act as also Notification No. framed in the said case (p. 506) :