TMI Blog1999 (1) TMI 11X X X X Extracts X X X X X X X X Extracts X X X X ..... no deduction of income-tax can be made as the entire amount as per the decree should be deposited by the Land Acquisition Officer. It is further contended that the entire amount is a decree debt .and as such there is no interest on any income and the decree is for the compensation amount on account of the property acquired by the respondents and, therefore, no income-tax can be deducted. Heard the learned Government Pleader. First of all I note that the Income-tax Department or the Union of India is not made a party in the proceedings and as such the original petition itself is not maintainable. The questions whether the interest payable on the enhanced amount as per the land acquisition decree is liable for payment of income-tax and w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... court. The direction of the Income-tax Department was given to the Land Acquisition Officer to deduct tax at source on such interest. The Supreme Court has considered the matter in Gupta (K. D.) (Lt. Col.) v. Union of India [1990] 181 ITR 530. The contention that since the entire decree amount is inclusive of the interest amount, the Land Acquisition Officer is bound to deposit the entire amount in the court and cannot deduct the tax, was not accepted by the court, and held that since it is the obligation of the Land Acquisition Officer to deduct income-tax at source, deducting income-tax at source and withholding that amount from the decree amount is not in violation of the court decree. The Land Acquisition Officer is the person responsi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... educting tax considering their total income. As already stated, the income-tax authorities were not made parties in the original petition. Exhibits P-1 and P-2 also show that the amount was already remitted to the Income-tax Department. Therefore, the prayer for direction to the second respondent to deposit the above amount to the Sub-Court, Palakkad, cannot be granted. If the petitioners feel that they are not liable to pay income-tax considering their total income for the relevant years, especially in the light of the Supreme Court decision in Gupta's case [1990] 181 ITR 530, it is for them to make an application for refund to the Income-tax Department, or to use the income-tax deduction certificate according to law. There is no merit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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