Chalamala Narasa Reddy Vs Special Deputy Collector Lao Somasila Project (Andhra Pradesh High Court)
Summary: The Andhra Pradesh High Court considered Civil Revision Petitions arising from orders passed in Execution Applications filed by decree holders in Land Acquisition Original Petitions. The petitioners had sought 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 amounts related to compensation awarded for structures and that income tax was therefore required to be deducted. Reliance was placed on Section 194LA of the Income-tax Act and the decision of the Supreme Court in Union of India v. Hari Singh (2018) 15 SCC 201. The respondent also contended that structures standing on agricultural lands remained taxable.
The Executing Court, by order dated 29.12.2025, partly allowed the applications, while granting liberty to the petitioners to claim exemption before the competent authority under Section 197 of the Income-tax Act. In doing so, it followed Nalini v. Deputy Collector (2006 (4) KARLJ 87) and the Supreme Court decision in Union of India v. Hari Singh (2018) 15 SCC 201. The petitioners challenged the order before the High Court.
