The issue raised in this writ petition is with respect to the acquisition for Metro rail project at Kochi and the tax deduction at source, from the award amounts, as mandated under Section 194 LA of the Income Tax Act, 1961. The contention of the petitioners is that they have under sub-section(2) of Section 11 entered into negotiated sale agreements with the District Level Purchase Committee, constituted by the Government and subsequently an award was passed under sub-section(2) of Section 11, taking it out of the net of a compulsory acquisition. The petitioners rely on a Division Bench judgment of this Court, which reliance was distinguished by the learned Standing Counsel for Government of India( Taxes), on the ground that the facts clearly distinguish the WP(C).12041/14 2 two acquisitions and the present acquisition is initiated under the Land Acquisition Act, 1894 and an award is also passed under the L A Act. 2. The issue with respect to an award passed under sub-section(2) of Section 11 has been considered by this Court in the judgment delivered in a batch of writ petitions W.P(C) No.4209 of 2014 and connected cases. The same principle would apply herein also. The very same declaration passed in the earlier case would apply squarely to the petitioners also. The revenue authorities are hence restrained from making any tax deduction at source as provided under 194 LA but however, with liberty to make such deduction under Section 194 IA, wherever it is permissible Writ petition allowed.
Sd/-
K.VINOD CHANDRAN, Judge Mrcs