Court held that it is Assessing Officer who has to come to conclusion whether land is agricultural land or not. Accordingly where Land Acquisition Collector while disbursing compensation, had deducted tax at source and deposited same with Income Tax Department, better course of action, which was in consonance with provisions of Act, for assessee should have been to approach concerned Assessing Officer and raise issue that no tax was payable on compensation/enhanced compensation received by them as their land was agricultural land.Court also held that in future, Land Acquisition Collectors shall follow the procedure as stipulated by the High Court of Kerala in Nalini v. Dy. Collector, Land Acquisition [2006 (4) ILR Kerala 229
UOI v. Hari Singh (2018) 254 Taxman 126 / 166 DTR 176/ 302 CTR 48 ( SC)/ITO v. Movaliya Bhikubhai Balabhai (2018) 254 Taxman 126 / 166 DTR 176/ 302 CTR 458 (SC)
S. 194LA : Deduction at source – Compensation on acquisition of certain immoveable property – Where Land Acquisition Collector while disbursing compensation, had deducted tax at source and deposited same with Income Tax Department, better course of action, which was in consonance with provisions of Act, for assessee should have been to approach concerned Assessing Officer and raise issue that no tax was payable on compensation/enhanced compensation received by them as their land was agricultural land – Collector was directed to follow the procedure prescribed by Kerala High Court . [ S.197 ]