SPECIAL TAHSILDAR AND LAND ACQUISITION OFFICER Vs. DANDU SARASWATAMMA
HIGH COURT OF ANDHRA PRADESH
SPECIAL TAHSILDAR AND LAND ACQUISITION OFFICER
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Immaneni Panduranga Rao, J. -
(1.)The common question that arises in all the above civil revision petitions is :
"Whether under section 194A of the Income-tax Act, 1961 (for short "the Act"), the Revenue Department is entitled to deduct income-tax from the interest accrued on the compensation amount payable under the Land Acquisition Act ?"
(2.)The facts leading to the filing of the above revision petitions are, briefly, as follows :
The Commissioner of Income-tax, Andhra Pradesh-I, addressed a D.O. letter dated 1/03/1987, to the ten Revenue Secretary requesting him to issue instructions to all the officers concerned with land acquisition to deduct income-tax on payment of interest and to follow the provisions as laid down under section 194A and other provisions of the Act. In paragraph 2 of that D. O. letter, it is stated that while paying interest, income-tax is deductible at the rates in force during that financial year with effect from 1/04/1975, if the amount exceeded Rs. 1,000.
(3.)Basing on that D.O. letter, evidently, the principal secretary has addressed all the district Collectors and the Collector, West Godavari District, Eluru, and issued instructions to his subordinate officers by this letter dated 21/03/1988, with regard to the deduction of income-tax on payment of the interest amount while paying compensation under the Land Acquisition Act. Pursuant to those instructions, the Land Acquisition Officers while depositing the enhanced compensation amounts in various execution petitions filed before the learned Subordinate Judge, Kovvur, have deducted income-tax on the interest accrued on the compensation amount. The learned Assistant Government Pleader relying upon section 194A of the Act requested the learned Subordinate Judge, Kovvur, to record full satisfaction of the decrees. The decree-holders raised objection to that course.
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