The property of the petitioners were transferred to Government on negotiated sale pursuant to notification under Section 4(1) of the Land Acquisition Act. The sale price was fixed by negotiation and the total sale consideration payable in respect of 0.95 Ares of land property in Sy.No. 541/14 of Nemom Village is ₹35,18,097/-. No tax is liable to be deducted either under Section 194 LA or under Section 194 IA of the Income Tax Act, 1961 since the property is having a sale consideration of less than ₹50 lakhs and it is not situated in notified area. But the respondents are insisting to deduct the income tax from the sale price payable to the petitioner and hence the writ petition.
2. Heard the learned Government Pleader as well as the learned Standing Counsel for the respondents.
3. After hearing both the sides, this Court finds that the issue is squarely covered by the decision rendered by this Court in Thomas v. District Collector (2013 (3) KLT 941). In the W.P.C. No. 29799 of 2014 -2-
said circumstance, respondents 1/District Collector and 2/Special Tahsildar LA are directed to disburse the amount due to the petitioners in the light of the decision cited supra without deducting any tax from the due amount.
The petitioners shall produce a copy of the judgment along with a copy of the writ petition before the concerned respondent for further steps. The writ petition is disposed of.
P.R. RAMACHANDRA MENON, JUDGE.
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