JUDGMENT

[WA Nos.1250/2014, 1295/2014, 1296/2014, 1538/2014, 1539/2014, 1728/2014, 1729/2014, 1818/2014, 1819/2014 & 170/2015]

Dated this the 8th day of July,2021 Bechu Kurian Thomas, J.

The issue that arises for consideration in this batch of writ appeals relate to the question whether tax is liable to be deducted at source for amounts paid as compensation arrived at under negotiated settlements during acquisition of property. The learned Single Judge held that tax cannot be deducted at source under Section 194LA of the Income Tax Act, 1963 (for short, 'the Act') in respect of compensation paid to the land owners which was arrived at based on negotiated settlements.

2. The above question springs from proceedings for acquisition of land initiated under Section 11 of the Land Acquisition Act, 1894 (for short, 'the LA Act') for implementing the Kochi Metro Rail Project. After proceedings were initiated for the acquisition of property under the L.A.Act, negotiations were held and settlements were arrived at with the respective land owners by the District Level Purchase Committee. In effect consent awards were passed by the District Collector under (2) of the LA Act, pursuant to the agr