Chalamala Narasa Reddy Vs Special Deputy Collector LAO Somasila Project (Andhra Pradesh High Court)
Summary: The Andhra Pradesh High Court disposed of Civil Revision Petition Nos. 448, 446, 447 and 449 of 2026 by a common order, as the issue involved in all the cases was identical. The petitioners were decree holders in Land Acquisition Original Petitions and had filed Execution Applications in Execution Petitions under Rules 231 to 235 of the Civil Rules of Practice seeking transfer of the awarded amounts through the CFMS online system to their accounts.
The Special Deputy Collector-cum-Land Acquisition Officer, Somasila Project, Unit-IV, Rajampet, opposed the applications on the ground that the applications concerned cheques for compensation awarded for structures and that income tax was therefore required to be deducted. Reliance was placed on Union of India v. Hari Singh, (2018) 15 SCC 201, contending that while compensation for acquisition of agricultural land was not subject to deduction, structures standing on agricultural lands remained taxable.
The Executing Court, by order dated 29.12.2025, partly allowed the applications and granted liberty to the petitioners to claim exemption before the competent authority under Section 197 of the Income Tax Act. The petitioners challenged those orders before the High Court.
