2003 (11) TMI 17

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....quired and an award was passed on November 24, 1999, fixing the compensation at Rs. 3,85,468. As per section 194L of the Income-tax Act 10 per cent, of the above compensation amount should have been withheld by the Land Acquisition authority towards income-tax and only the rest of the amount should have been disbursed. By inadvertence, the entire compensation amount had been disbursed to the petit....

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....on or the enhanced compensation or the consideration or the enhanced consideration on account of compulsory acquisition, under any law for the time being in force, of any capital asset shall, at the time of payment of such sum in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct an amount equal to ten per cent, of such sum as income-tax on income comprised th....

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.... per cent, of the compensation amount and surcharge. The main argument advanced by learned counsel for the petitioner was that the Land Acquisition Officer had no authority to make a demand for the return of the amount and a notice can be issued only by the Income-tax Department, even if any amount was payable to the Income-tax Department. Section 194L was in the Income-tax Act for a period fro....