M.J.POLY v. DISTRICT COLLECTOR, ERNAKULAM & OTHERS

Case Details & Bench

Court: High Court of Kerala
Hon'ble Judges: P. R. Ramachandra Menon, J.
Judgment Date: 2014-12-18
Court Decision / Holding: Writ petition disposed of. The District Collector and the Special Tahsildar LA are directed to disburse the amount due to the petitioners in light of Thomas v. District Collector. If the amount exceeds Rs. 50 lakhs, 1% deduction under Section 194-IA shall be made and deposited to the 3rd respondent (Income Tax). Petitioners to furnish a copy of this judgment along with the writ petition to facilitate compliance. The petition is disposed of.
Final Disposition: Writ petition disposed of.

Parties to the Case

Appellants / Petitioners

M.J.POLY
ANNIE URMESE
PAUL MATHEW
MATHAI
P.A.JOSEPH
RANI
A.U.JOSE
SAVY
PAUL
DONY PAUL
LEENA W/O. JOSE
SEBASTIAN
CHACKO VARGHESE
THOMAS PAULOSE
BABU
ANTHONY PAUL
VARGHESE
VARKEY JOSEPH
P.T.GEORGEKUTTY
VARGHESE S/O. CHACKU
SONY VARGHESE
LEENA W/O. SONY
SOJI VARGHESE
DEVASSY OUSEPH
THOMAS ANTONY
OUSEPH THOMAS
LOUIS
JOSE
SEBASTIAN
ANTHONYKUTTY
URMESE PAPPACHAN
JOSE CHERIA
SHIVASANKARAN
DEVASSY URMESE
JOJI
URMESE DEVASSY
JOY
THOMAS
JOBY MATHEW
VAREETH POULOSE
DEVASSY THOMMAN
MARTIN
FR.PAUL MANAVALAN VICAR
THOMAS JOSE
THOMAS JOSE
REENA
CHERIAN
IGIN URMESE
PAILY DEVASSY
JOSE
OUSEPH CHERIAN

Respondents

DISTRICT COLLECTOR, ERNAKULAM, CIVIL STATION, KAKKANAD P.O - 682 030
THE SPECIAL TAHISILDAR (LA) NATIONAL HIGHWAY NO.II, ALUVA - 682 101
THE COMMISSIONER OF INCOME TAX (TDS) OFFICE OF THE COMMISSIONER OF INCOME TAX C.R.BUILDINGS, I.S PRESS ROAD, ERNAKULAM, KOCHI - 682 018

Legal Representation & Advocates

Counsels for Petitioners

• SRI. WILSON URMESE

Counsels for Respondents

• SRI.P.FAZIL
• SRI.JOSE JOSEPH, SC, FOR INCOME TAX

Case Synopsis & Summary

The petitioners, a large group of landowners in Angamaly, challenged the demand by the 2nd respondent to deduct income tax from the compensation/sale proceeds fixed during the road-widening project (Vengoor - Nayathode road). They argued that the sale price was fixed by negotiation and should be disbursed without withholding tax. The Court heard the matter and, after considering the facts, held that the issue is squarely covered by a prior Kerala High Court decision, Thomas v. District Collector (2013 (3) KLT 941). Following that decision, the court directed the District Collector and the Special Tahsildar (LA) to disburse the amounts due to the petitioners in light of that ruling. The order clarifies that if the amount exceeds 50 lakhs, a deduction of 1% under Section 194-IA should be effected and remitted to the Income Tax Department by the 3rd respondent. The petitioners are required to produce a copy of the judgment along with the writ petition before the concerned authorities for accomplishing the steps. The writ petition is disposed of accordingly, leaving the petitioners to pursue further steps as necessary.

Provisions of Law Cited

Section 194-IA, Income Tax Act

Submissions & Arguments

Contentions of Appellants / Petitioners

The petitioners contended that income tax deduction under Section 194-IA from sale proceeds fixed by negotiation in the road widening project is improper and that disbursement should be made without withholding tax, or in line with the precedent set by Thomas v. District Collector. They seek a directive to ensure payment of the sale amounts without unnecessary withholding.

Contentions of Respondents

The respondents contended that Section 194-IA requires tax deduction at source on the sale of immovable property; they argued the 10% deduction is the statutory requirement and should be applied, with compliance to applicable thresholds.

Cited Precedents (1)

Case Name	Citation	Treatment	Explanation
Thomas v. District Collector	2013 (3) KLT 941	Positive	The court relies on this decision; the issue is squarely covered by it and follows its reasoning.

Extracted Judgment Text

Exact text extracted from official judgment records.

## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** **PRESENT:** ## **THE HONOURABLE MR.JUSTICE P.R.RAMACHANDRA MENON** **THURSDAY, THE 18TH DAY OF DECEMBER 2014/27TH AGRAHAYANA, 1936** ## **WP(C).No. 33017 of 2014 (B)** **---------------------------------------** ## **PETITIONER(S):** **-----------------------** ## **1. M.J.POLY,** - **S/O. JOSEPH, MUNDADAN HOUSE, ANGAMALY P.O. ERNAKULAM DISTRICT (LAC NO. 36/13).** ## **2. ANNIE URMESE** **W/O. URMESE, CHAKKINCHERY HOUSE, KAVARAPARAMBU NAYATHODE P.O., ANGAMALY ERNAKULAM DISTRICT (LAC NO. 58/13).** ## **3. PAUL MATHEW** **S/O. MATHAI, KOTTACKAL HOUSE, KAVARAPARAMBU NAYATHODE P.O., ANGAMALY, ERNAKULAM DISTRICT (LAC NO. 33/13).** ## **4. MATHAI** **S/O. MANI, KOTTACKAL HOUSE, KAVARAPARAMBU NAYATHODE P.O., ANGAMALY ENRAKULAM DISTRICT (LAC NO. 34/13).** ## **5. P.A.JOSEPH** - **S/O. ANTORNY, PADAYATTIL HOUSE, ANGAMALY P.O. ERNAKULAM DISTRICT (LAC NOS. 39/13, 66/13 & 30/13).** ## **6. RANI** - **W/O. JOBY, THOTTUNGAL HOUSE, KAVARAPARAMBU NAYATHODE P.O., ANGAMALY ERNAKULAM DISTRICT (LAC NO. 61/13).** **7. A.U.JOSE S/O. URMESE, AREECKAL HOUSE, ANGAMALY P.O. ERNAKUALAM DISTRICT (LAC NO. 40/13).** ## **8. SAVY** - **S/O. URMESE PAPPACHAN, MENACHERY HOUSE, KAVARAPARAMBU NAYATHODE P.O., ANGAMALY ERNAKULAM DISTRICT (LAC NO. 2713 & 28/13).** **PJ** **....2/-** **..2..** **WP(C).No. 33017 of 2014 (B)** ## **---------------------------------------** ## **9. PAUL** **S/O. THOMAS, PANATTUPARAMBIL HOUSE KAVARAPARAMBU NAYATHODE P.O., ANGAMALY ERNAKULAM DISTRICT (LAC NO. 63/13).** ## **10. DONY PAUL** **S/O. PAUL, PANATTUPARAMBIL HOUSE KAVARAPARAMBU NAYATHODE P.O., ANGAMALY ERNAKULAM DISTRICT (LAC NO. 64/13).** ## **11. LILLY JOSE** - **W/O. JOSE, MENACHERY HOUSE KAVARAPARAMBU NAYATHODE P.O., ANGAMALY ERNAKULAM DISTRICT (LAC NO. 44/13).** ## **12. SEBASTIAN** - **S/O.ANTHONY, MENACHERY HOUSE KAVARAPARAMBU NAYATHODE P.O., ANGAMALY ERNAKULAM DISTRICT (LAC NO. 46/13).** ## **13. CHACKO VARGHESE** - **PYNADATH HOUSE, KAVARAPARAMBU NAYATHODE P.O., ANGAMALY ERNAKULAM DISTRICT (LAC NO. 22/13).** ## **14. THOMAS PAULOSE** - **MENACHERY HOUSE, KAVARAPARAMBU NAYATHODE P.O. ANGAMALY, ERNAKULAM DISTRICT (LAC NO. 20/13).** ## **15. BABU** - **S/O. JOSEPH, MENACHERY HOUSE KAVARAPARAMBU NAYATHODE P.O., ANGAMALY ERNAKULAM DISTRICT (LAC NO. 17/13).** ## **16. ANTHONY PAUL** **MENACHERY HOUSE, KAVARAPARAMBU NAYATHODE P.O. ANGAMALY, ERNAKULAM DISTRICT (LAC NO. 26/13).** **17. VARKEY JOSEPH MENACHERY HOUSE, KAVARAPARAMBU NAYATHODE P.O. ANGAMALY, ERNAKULAM DISTRICT (LAC NO. 16/13 & 55/13).** **18. P.T.GEORGEKUTTY MARANGADAN PUTHUSSERY HOUSE KAVARAPARAMBU NAYATHODE P.O., ANGAMALY ERNAKULAM DISTRICT (LAC NO. 45/13)** ## **19. VARGHESE** - **S/O. CHACKU, KOTTACKAL HOUSE KAVARAPARAMBU NAYATHODE P.O., ANGAMALY ERNAKULAM DISTRICT (LAC NO. 1/13).** **....3/-** **..3..** **WP(C).No. 33017 of 2014 (B)** ## **---------------------------------------** ## **20. SONY VARGHESE** **S/O. VARGHESE, MENACHERY HOUSE KAVARAPARAMBU NAYATHODE P.O., ANGAMALY ERNAKULAM DISTRICT (LAC NO. 18/13).** ## **21. LEENA** **W/O. SONY, MENACHERY HOUSE KAVARAPARAMBU NAYATHODE P.O., ANGAMALY ERNAKULAM DISTRICT (LAC NO. 7/13).** ## **22. SOJI VARGHESE** **S/O. VARGHESE, MENACHERY HOUSE KAVARAPARAMBU NAYATHODE P.O., ANGAMALY ERNAKULAM DISTRICT (LAC NO. 19/13).** ## **23. DEVASSY OUSEPH** - **MENACHERY HOUSE, KAVARAPARAMBU NAYATHODE P.O. ANGAMALY, ERNAKULAM DISTRICT (LAC NO. 12/13).** ## **24. THOMAS ANTONY** - **S/O. LATE ANTHONY, MENACHERY HOUSE KAVARAPARAMBU NAYATHODE P.O., ANGAMALY ERNAKULAM DISTRICT (LAC NO. 57/13).** ## **25. OUSEPH THOMAS** - **KANNETH HOUSE, KAVARAPARAMBU NAYATHODE P.O., ANGAMALY ERNAKULAM DISTRICT (LAC NO. 62/13).** ## **26. LOUIS** **S/O. OUSEPH, PERUMAYAN HOUSE KAVARAPARAMBU NAYATHODE P.O., ANGAMALY ERNAKULAM DISTRICT (LAC NO. 31/13).** ## **27. JOSE** - **S/O. VARUNNY, CHAKKICHERY HOUSE KAVARAPARAMBU NAYATHODE P.O., ANGAMALY ERNAKULAM DISTRICT (LAC NO. 59/13).** ## **28. SEBASTIAN** - **S/O. PAULOSE, MENACHERY HOUSE KAVARAPARAMBU NAYATHODE P.O., ANGAMALY ERNAKULAM DISTRICT (LAC NO. 43/13).** ## **29. ANTHONYKUTTY** - **PADAYATTY HOUSE, KAVARAPARAMBU NAYATHODE P.O. ANGAMALY, ERNAKULAM DISTRICT (LAC NO. 2/13).** **30. URMESE PAPPACHAN MENACHERY HOUSE, KAVARAPARAMBU NAYATHODE P.O. ANGAMALY, ERNAKULAM DISTRICT (LAC NO. 27/13).** **....4/-** **..4..** **WP(C).No. 33017 of 2014 (B)** ## **---------------------------------------** ## **31. JOSE CHERIA** **MENACHERY HOUSE, KAVARAPARAMBU NAYATHODE P.O. ANGAMALY, ERNAKULAM DISTRICT (LAC NO. 29/13).** **32. SHIVASANKARAN S/O. THUPRAN, KOLAPPADATH HOUSE KAVARAPARAMBU NAYATHODE P.O., ANGAMALY ERNAKULAM DISTRICT (LAC NO. 21/13).** ## **33. DEVASSY URMESE** - **S/O. DEVASSY, MENACHERY HOUSE KAVARAPARAMBU NAYATHODE P.O., ANGAMALY ERNAKULAM DISTRICT (LAC NO. 54/13).** ## **34. JOJI** - **S/O. DEVASSY, MENACHERY HOUSE KAVARAPARAMBU NAYATHODE P.O., ANGAMALY ERNAKULAM DISTRICT (LAC NO. 52/13 & 53/13).** ## **35. URMESE DEVASSY** - **MENACHERY HOUSE, KAVARAPARAMBU NAYATHODE P.O. ANGAMALY, ERNAKULAM DISTRICT (LAC NO. 51/13).** ## **36. JOY** **S/O. LATE MARIAM, MUNDADAN HOUSE, ANGAMALY P.O. ERNAKULAM DISRICT (LAC NO. 38/13).** ## **37. THOMAS** - **S/O. URUMESE, MENACHERY HOUSE KAVARAPARAMBU NAYATHODE P.O., ANGAMALY ERNAKULAM DISTRICT (LAC NO. 10/13).** ## **38. JOBY MATHEW** - **S/O. MATHAI, KOTTACKAL HOUSE KAVARAPARAMBU NAYATHODE P.O., ANGAMALY ERNAKULAM DISTRICT (LAC NO. 32/13).** ## **39. VAREETH POULOSE** - **ATHAPPILLY HOUSE, KAVARAPARAMBU NAYATHODE P.O. ANGAMALY, ERNAKULAM DISTRICT (LAC NO. 6/13).** **40. DEVASSY THOMMAN MENACHERY HOUSE, KAVARAPARAMBU NAYATHODE P.O. ANGAMALY, ERNAKULAM DISTRICT (LAC NO. 13/13).** ## **41. MARTIN** - **S/O. POULOSE, MENACHERY HOUSE KAVARAPARAMBU NAYATHODE P.O., ANGAMALY ERNAKULAM DISTRICT (LAC NO. 42/13).** **....5/-** **..5..** ## **WP(C).No. 33017 of 2014 (B)** ## **---------------------------------------** **42. FR.PAUL MANAVALAN VICAR, LITTLE FLOWER CHURCH KAVARAPARAMBU NAYATHODE P.O., ANGAMALY ERNAKULAM DISTRICT (LAC NO. 56/13).** ## **43. THOMAS JOSE** - **S/O. P.D.JOSE, PAYYAPPILLY HOUSE KAVARAPARAMBU NAYATHODE P.O., ANGAMALY ERNAKULAM DISTRICT (LAC NO. 4/13).** ## **44. THOMAS JOSE** - **S/O. P.D.JOSE, PAYYAPPILLY HOUSE KAVARAPARAMBU NAYATHODE P.O., ANGAMALY ERNAKULAM DISTRICT (LAC NO. 4/13)** ## **45. REENA** - **D/O. DEVASSY, CHAKKICHERY HOUSE KAVARAPARAMBU NAYATHODE P.O., ANGAMALY ERNAKULAM DISTRICT (LAC NO. 48/13).** ## **46. CHERIAN** - **S/O. ANTHONY, PADAYATTY HOUSE KAVARAPARAMBU NAYATHODE P.O., ANGAMALY ERNAKULAM DISTRICT.** ## **47. IGIN URMESE** - **S/O. URMESE, CHAKKICHERY HOUSE KAVARAPARAMBU NAYATHODE P.O., ANGAMALY ERNAKULAM DISTRICT (LAC NO. 58/13).** ## **48. PAILY DEVASSY** - **MENACHERY HOUSE, KAVARAPARAMBU NAYATHODE P.O. ANGAMALY, ERNAKULAM DISTRICT (LAC NO. 15/13).** ## **49. JOSE** - **S/O. DEVASSY, MENACHERY HOUSE KAVARAPARAMBU NAYATHODE P.O., ANGAMALY ERNAKULAM DISTRICT (LAC NO. 25/13).** ## **50. OUSEPH CHERIAN** - **S/O. OUSEPH, MENACHERY HOUSE KAVARAPARAMBU NAYATHODE P.O., ANGAMALY ERNAKULAM DISTRICT (LAC NO. 47/13).** **BY ADV. SRI.WILSON URMESE** **PJ** **.....6/-** **..6..** **WP(C).No. 33017 of 2014 (B)** **---------------------------------------** ## **RESPONDENT(S):** - **----------------------------** ## **1. DISTRICT COLLECTOR** - **ERNAKULAM, CIVIL STATION, KAKKANAD P.O - 682 030.** **2. THE SPECIAL TAHISILDAR (LA) NATIONAL HIGHWAY NO.II, ALUVA - 682 101.** **3. THE COMMISSIONER OF INCOME TAX (TDS) OFFICE OF THE COMMISSIONER OF INCOME TAX C.R.BUILDINGS, I.S PRESS ROAD, ERNAKULAM, KOCHI - 682 018.** **R1 & 2 BY SENIOR GOVERNMENT PLEADER SRI.P.FAZIL R3 BY SRI.JOSE JOSEPH, SC, FOR INCOME TAX** **THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 18-12-2014, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** **PJ** ## **WP(C).No. 33017 of 2014 (B) ----------------------------------------** ## **APPENDIX** ## **PETITIONER(S)' EXHIBITS -------------------------------------** - **P1 - TRUE COPY OF THE NOTICE DT. 09.4.12 ISSUED TO 2ND PETITIONER BY THE 2ND RESPONDENT.** - **P2 - TRUE COPY OF THE DECLARATION DT. 25.9.12 ISSUED BY THE COMMISSIONER FOR LAND REVENUE.** - **P3 - TRUE CPY OF THE NOTICE DT. 19.2.13 ISSUED TO 2ND PETITIONER BY THE 1ST RESPONDENT.** - **P4 - TRUE OCPY OF THE NOTICE DT. 07.11.14 ISSUED TO THE 1ST PETITIONER BY THE 2ND RESPONDENT.** - **P4(A) - TRUE COPY OF THE NOTICE DT. 07.11.14 ISSUED TO THE 2ND PETITIONER BY THE 2ND RESPONDENT.** - **P4(B) - TRUE COPY OF THE NOTICE DT. 07.11.14 ISSUED TO THE 19TH PETITIONER BY THE 2ND RESPONDENT.** - **P5 - TRUE OCPY OF THE MODEL OF THE AGREEMENT PROVIDED BY THE 2ND RESPONDENT.** - **P6 - TRUE COPY OF THE JUDGMENT DT. 08.1.09 IN WA NO. 2243/08.** - **P7 - TRUE COPY OF THE JUDGMENT DT. 07.1.13 IN WPC NO. 568/13.** - **P8 - TRUE COPY OF THE JUDGMENT DT. 03.6.14 IN WPC.5607/14.** ## **RESPONDENT(S)' EXHIBITS** - **---------------------------------------** **NIL.** **/ TRUE COPY** **P.S. TO JUDGE** **PJ** ## **P.R. RAMACHANDRA MENON, J.** ======================== W.P.(C). No. 33017 of 2014 -------------------------------------------Dated this the 18th day of December, 2014 ## **JUDGMENT** The properties of the petitioners were notified for widening of Vengoor - Nayathode road (Airport road) at Angamaly. The sale price was fixed by 'negotiation' and the petitioners herein have agreed to hand over their property at the rate fixed during negotiation. But the 2nd respondent is insisting to deduct income tax from the sale price payable to the petitioners at the rate of 10% and hence the writ petition. 2. Heard the learned Government Pleader as well as the learned Standing Counsel for the 3rd respondent. 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 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. It is made clear that, if the amount exceeds 50 lakhs, necessary deduction shall₹ W.P.C. No. 33017 of 2014 -2- be effected in terms of Section 194 IA by deducting 1% and depositing the same against the account of the 3rd respondent. It is for the petitioners to pursue further steps accordingly. 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.** kp/-