Navinbhai Bhagubhai Patel Vs Union of India (Gujarat High Court)
Gujarat High Court held that non-filing of Income Tax Return as ignorant about deduction of TDS on account of land acquisition reasonable. Accordingly, delay condoned and petitioner allowed the file the income tax return of the relevant year.
Facts- The petitioner is an individual and had no taxable business income till the year 2022-23. Therefore, he was not required to file Income Tax Return till A.Y. 2022-23, as per the provision of Section 139(2) of the Act. Notably, land of the petitioner was acquired under the provision of Land Acquisition Act, 1894. The Land Acquisition Officer had issued a regular award on 21.1.2009. Consequently, a settlement agreement was executed between the petitioner and acquiring bodies on 16.2.2022 resulting the petitioner receiving a compensation to the tune of Rs.62,66,967/-. Thus, the acquiring company Ancelor Mittal Nippon Steel India Limited also deducted tax at source to the tune of Rs.6,66,667/- u/s. 194LA of the Act. This was duly reflected in Form 26AS on 5.6.2022. The acquiring company, however, failed to give Tax Deduction at Source (TDS) Certificate in Form 16A to the petitioner and never informed the petitioner about the deduction of tax at source.
