Karnataka High Court
Basavant Rao vs The Special Land Acquisiton Officer on 19 March, 2025
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NC: 2025:KHC-K:1733
WP No. 201776 of 2024
IN THE HIGH COURT OF KARNATAKA,
KALABURAGI BENCH
DATED THIS THE 19TH DAY OF MARCH, 2025
BEFORE
THE HON'BLE MR. JUSTICE ANANT RAMANATH HEGDE
WRIT PETITION NO.201776 OF 2024 (LA-RES)
BETWEEN:
BASAVANT RAO
S/O SANGAPPA,
AGE: 21 YEARS,
OCC: AGRICULTURE,
R/O: YELMAMADI VILLAGE,
TQ: CHINCHOLI,
DIST: KALABURAGI.
...PETITIONER
(BY SRI SUBHASH MALLAPUR, ADVOCATE)
AND:
THE SPECIAL LAND ACQUISITION OFFICER,
Digitally signed by MINOR AND MEDIUM IRRIGATION PROJECT,
BASALINGAPPA KALABURAGI - 585 102.
SHIVARAJ
DHUTTARGAON ...RESPONDENT
Location: HIGH
COURT OF
KARNATAKA (BY SRI MALLIKARJUN SAHUKAR, A.G.A.)
THIS WRIT PETITION IS FILED UNDER ARTICLES 226
AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO
ISSUE A WRIT IN NATURE OF MANDAMUS DIRECTING THE
RESPONDENTS TO CONSIDER THE APPLICATION OF THE
PETITIONER TO RELEASE THE WITHHELD TDS AMOUNT
DT.22.02.2024 VIDE ANNEXURE-C AND ETC.
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NC: 2025:KHC-K:1733
WP No. 201776 of 2024
THIS WRIT PETITION COMING ON FOR PRELIMINARY
HEARING IN 'B' GROUP, THIS DAY, ORDER WAS MADE
THEREIN AS UNDER:
CORAM: HON'BLE MR. JUSTICE ANANT RAMANATH HEGDE
ORAL ORDER
(PER: HON'BLE MR. JUSTICE ANANT RAMANATH HEGDE) Heard the learned counsel appearing for the petitioner and the learned counsel appearing for the respondent.
2. The petitioner is questioning the order deducting tax at source in respect of compensation awarded in respect of agricultural lands. Learned counsel further submits that tax cannot be deducted at source in respect of compensation awarded to agricultural land and issue is covered in terms of order in W.P.No.201346/2022 and connected matters.
3. Learned Additional Government Advocate does not dispute the submission.
4. It is noticed from the facts that the petitioner's land acquired and compensation is awarded and payment is made after deducting the tax at source as Section 194LA of the Income Tax Act, 1961 exempts deduction of tax at source in respect of agriculture land. Admittedly, the lands acquired are -3- NC: 2025:KHC-K:1733 WP No. 201776 of 2024 agricultural lands, as such the authorities could not have deducted the tax at source. However, the respondent claims that the tax is deducted at source. Since the respondent does not have the right to deduct the tax at source as the compensation awarded to the petitioner is in respect of agriculture land, the respondent shall deposit the said amount before the executing court/reference court and the executing court/reference court shall release the amount to the petitioner on such deposit.
5. The respondent is permitted to move the necessary application to the competent authority under the Income Tax Act to claim refund of tax deducted at source in respect of the compensation amount payable to the petitioner on account of acquisition of petitioners agriculture on the premise that the tax is erroneously deducted at source and wrongly credited to the income tax department.
6. If the respondent submits necessary documents and makes a claim for refund of tax deducted at source in respect of compensation paid to the petitioner's agriculture land the income tax authority shall refund such amount of tax -4- NC: 2025:KHC-K:1733 WP No. 201776 of 2024 deducted at source to the respondent in respect of petitioner's agricultural land. Since this Court is aware that the income tax department is not a party to this proceeding, liberty is reserved to the income tax department to move this Court for modification of the order.
It is made clear that the income tax authority shall release the amount to the respondent only after respondent submits proof for having deposited the tax erroneously deducted at source, before the executing court.
Hence the following:
ORDER
i) The writ petition is allowed.
ii) The respondent shall deposit the tax deducted at source in respect of petitioner's agriculture land before the executing court / reference court within 30 days from today.
iii) On such deposit, the amount shall be released in favour of the petitioner.
iv) The respondent is permitted to file application before the income tax authority seeking refund of erroneously deposited tax amount (tax deducted at source) in respect of compensation -5- NC: 2025:KHC-K:1733 WP No. 201776 of 2024 amount paid to the petitioner's agriculture land in terms of the Judgment in MFA No.2274/2001.
v) The competent income authorities shall release the amount deducted at source in respect of compensation awarded towards petitioner's agriculture land in MFA No.2274/2001.
vi) The income tax authorities are at liberty to move this Court for modification of this order, if aggrieved.
Sd/-
(ANANT RAMANATH HEGDE) JUDGE BL List No.: 2 Sl No.: 56