ITO,TDS Ward - Ranchi Vs. District Land Acquisition Officer, Khunti, Jharkhand

Parties Involved

Facts Summary

The case involves appeals by the Revenue against orders of the Commissioner of Income Tax (Appeals) in Delhi, which deleted TDS and interest charged for the assessment years 2013-14 to 2016-17. The District Land Acquisition Officer (DLAO) in Khunti was found liable for failing to deduct TDS under section 194L of the Income Tax Act, 1961. The DLAO was under a statutory obligation to deduct TDS on compensation paid for land acquisition by the Government. However, no TDS was deducted on such payments, and none of the recipients had a PAN. The DLAO argued that no TDS was required as the payments were for the acquisition of agricultural lands, which did not fall within the territory of Nagar Panchayat, Khunti. However, the Assessing Officer held that the lands were within 1.5 km from the border of the Nagar Panchayat, Khunti, and thus not agricultural in nature. The Revenue argued that the Commissioner of Income Tax (Appeals) overlooked reports from various authorities that the lands were within 2 km of the Nagar Panchayat, Khunti, making them urban in nature and subject to TDS deduction.…

Legal Issues

• 1. Whether the lands in question are agricultural or urban in nature?

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

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