TMI Blog2006 (8) TMI 165X X X X Extracts X X X X X X X X Extracts X X X X ..... . The land acquisition court has no jurisdiction to decide that issue and that is a matter to be decided by the Income-tax Officer. So the order passed by the court below is correct. The remedy available to the petitioner is to get the TDC from the Land Acquisition Officer and claim refund from the Income-tax Officer. In the result the civil revision petition is dismissed. There will be a direction to the Land Acquisition Officer to issue TDC to the petitioner in accordance with law as expeditiously as possible. - HON'BLE K. PADMANABHAN NAIR, J. For the Appellant : Thiyyannoor Ramakrishnan, Arun Kumar P. and C. Chandrasekharan, Advs. For the Respondent : P.K. Raveendranatha Menon, Sr. Adv., George K. George, Adv. and Mohan C. Menon, Sr. Government Pleader ORDER K. PADMANABHAN NAIR J. 1. The decree holder in E.P. No. 493 of 1999 in L.A.R. No. 19 of 1994 on the file of the Additional Subordinate Judge's Court, Thrissur, is the revision petitioner. The property owned by the petitioner was acquired for a public purpose. The petitioner claimed additional compensation. The matter was referred to the land acquisition court. The land acquisition court ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... interest, a statutory liability is cast upon the Land Acquisition Officer to deduct income-tax at source provided the amount of interest is more than Rs. 5,000/-. Learned counsel appearing for the petitioner has argued that the interest accrued in this case is not for a single year but for a number of years and if the interest is appropriated for each year, the interest accrued for each year will not exceed Rs. 5,000/- and he would not be liable to pay any income-tax. The authority competent to consider the benefit claimed by the petitioner is the Income-tax Officer. 5. Section 194LA casts a statutory liability on the Land Acquisition Officer to deduct income-tax at source if the amount of compensation is paid after October 1, 2004, and the same exceeds one hundred thousand rupees. It is contended that the liability to deduct income-tax under section 194LA arises only if the land acquired is not agricultural land. It is true that section 194LA excludes agricultural land. Explanation to section 194LA provides that agricultural land means agricultural land in India as referred to in items (a) and (b) of sub-clause (iii) of clause (14) of section 2. Section 2(14) deals with capi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orming him about the liability to pay income-tax. I am of the view that it is only just and proper that the parties are given advance notice regarding the liability to pay income-tax. The Land Acquisition Officer can note this fact also, in the notice issued to the claimant under section 9 of the Land Acquisition Act. The claimant shall be informed about this fact during award enquiry stage. In the award, the income-tax deducted shall be separately shown. 7. If the claimants are told about their liability to pay income-tax before deducting the same they will have an option to get a certificate of exemption from payment of tax, reduced rate of tax, etc., from the competent officer under section 197 of the Income-tax Act. So, it is only just and proper that the State Government issues necessary directions to the Land Acquisition Officer to give notice regarding the liability of the claimants to pay income-tax even before passing of the award. 8. Shri George K. George, learned standing counsel appearing for the Income-tax Department submitted that with effect from October 1, 2004, any person, who is responsible for paying to a resident, any sum, being in the nature of compensati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d payments to certain non-residents shall be filed in Form No. 26Q. It is also pointed out that if there is failure to deduct or pay tax the amount will carry interest at the rate of 12 per cent. It is pointed out that the following are the penalties prescribed in case of failure. Section Nature of default Penalty 271C Failure to deduct the whole or any part of tax at source Sum equal to the amount of tax which he failed to deduct 272B Failure to comply with the provisions of sections 139A for quoting PAN Rs. 10,000/- 272BB Failure to apply for TAN Rs. 10,000/- 272A(2) Failure to file the return of TDS/tax collected at source including quarterly statements of TDS/TCS Rs. 100/- for every day during which the failure continues, but the penalty shall not exceed the amount of tax deductible/collectible 272A(2) Failure to issue TDS certificates Rs. 100/- for every day during wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the concerned court and if tax is deductible the same will be calculated and deducted. It is submitted that the amount calculated as per the statement of account is deposited by D form cheque along with a treasury challan for the amount to be deposited towards the income-tax into the court through the Government Pleaders concerned. It is further submitted that the courts will forward the D form cheques along with the treasury challan to the treasury for book adjustment. The treasury will then account the income-tax in the head of account 8658-00-112-TDS and forward a copy of the challan thereof to the concerned Land Acquisition Officer. It is submitted that TDC will be issued by the Land Acquisition Officer to the claimant at their request. It is also submitted that after the decision reported in Mariyamma's case [2006] 280 ITR 225 (Ker) the income-tax calculated is directly remitted to the treasury and the amount due to the claimant is remitted to the court by issuing D form cheque by the Land Acquisition Officer. It is further submitted that the particulars of remittance towards income-tax are gathered and TDC is issued by the Land Acquisition Officer. 13. It is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 194K, section 194LA, section 195, section 196A, section 196B, section 196C and section 196D shall be in Form No. 16A. (2) (3) The certificate mentioned in sub-rule (1) shall be furnished within a period of one month from the end of the month during which the credit has been given or the sums have been paid or, as the case may be, a cheque or warrant for payment of any dividend has been issued to a shareholder. So rule 31 of the Income-tax Rules enjoins that the claimants in land acquisition proceedings are entitled to get a tax deduction certificate in Form No. 16A within one month from the end of month during which the credit has been given or the sums have been paid or, as the case may be, a cheque or warrant for payment. The Land Acquisition Officer shall issue tax deduction certificate within one month from the end of the month in which the amount was deposited. Section 272A(1) of the Income-tax Act provides for penalty for failure to issue tax deduction certificate. The penalty provided is Rs. 100/- for every day during which the failure continues but the same shall not exceed the amount of tax deducted. If there is delay in issuing tax deduction certific ..... X X X X Extracts X X X X X X X X Extracts X X X X
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