Market Committee Safidon vs Rattan Singh And Another on 7 December, 2012

[Cites 3, Cited by 1]

Punjab-Haryana High Court

Market Committee Safidon vs Rattan Singh And Another on 7 December, 2012

Bench: K. Kannan

      IN THE HIGH COURT OF PUNJAB AND HARYANA
                   AT CHANDIGARH

                        Civil Revision No.3225 of 2012 (O&M)
                        Date of decision:07.12.2012

Market Committee Safidon, Tehsil Safidon, District Jind, through its
Secretary
                                                    ....Petitioner

                               versus


Rattan Singh and another                                ....Respondents


CORAM: HON'BLE MR. JUSTICE K. KANNAN
                    ----

Present:    Mr. H.N. Mehtani, Advocate,
            for the petitioner.

            Mr.Ved Parkash, Advocate,
            for respondent No.1.
                             ----

1.    Whether reporters of local papers may be allowed to see the
      judgment ? No.
2.    To be referred to the reporters or not ? No.
3.    Whether the judgment should be reported in the digest ? No.
                               ----

K.Kannan, J.(Oral)

1. The impugned order is a direction to refund the amount deducted by the State at the time of releasing the compensation for acquisition of amount in a reference under Section 18 of the Land Acquisition Act. The deduction of tax as per law shall be permissible only for interest on the enhanced portion of compensation and for acquisition, but the compensation for acquisition of agricultural land itself is not liable for tax. The Court Civil Revision No.3225 of 2012 (O&M) -2- has directed the entire amount to be refunded which is not correct. The matter is remitted to the Court below with the following observations:

i) The amount of compensation determined for land cannot be subject to any TDS (tax deducted at source).

This is as per the judgment of a Division Bench of this High Court in Risal Singh Versus Union of India-2010 (321) ITR 251;

ii) The interest on the compensation determined shall alone be liable for tax deduction. The respective components of compensation shall be worked out and the amount that ought to have been paid by the State shall be redetermined by the Court below. It is clarified that the compensation for land includes the additional amount that the Government is liable to pay under Section 23(1-A) as well as the solatium which shall be paid under Section 23(2) of the Land Acquisition Act. There shall be no deduction for the above two items as well.

2. The civil revision is allowed and remitted to the Court below for disposal in accordance with law.

(K.KANNAN) JUDGE 07.12.2012 sanjeev

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