- 1 - HC-KAR CNR: KAHC010066752026 NC: 2026:KHC:40555-DB WA No. 252 of 2026 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 31ST DAY OF JULY, 2026 PRESENT THE HON'BLE MR. JUSTICE S.G.PANDIT AND THE HON'BLE DR. JUSTICE K.MANMADHA RAO WRIT APPEAL NO. 252 OF 2026 (T-IT) BETWEEN: 1. THE UNION OF INDIA REP. BY PRINCIPAL SECRETARY MINISTRY OF FINANCE, JEEVANDEEP BUILDING, SANSAD MARG, NEW DELHI-110001. 2. THE INCOME TAX OFFICER, WARD-6(2)(1), BMTC BUILDING, 80 FEET ROAD, 6TH BLOCK, NEAR KHB GAMES VILLAGE, KORAMANGALA, BENGALURU-560 095. …APPELLANTS (BY SRI. RAVI RAJ Y. V., ADV.) AND: 1. SMT. KUNHAMINA HAJJUMMA W/O. LATE HAJI KK HUSSIAN AGED ABOUT 75 YEARS R/AT NO.140/5-1, MUNISWAMAPPA ROAD, MUNIREDDYPALLYA, J.C. NAGAR, BENGALURU - 560006. 2. THE GENERAL MANAGER (LAND ACQUISITION AND ESTATE) BMRCL BMLTC COMPLEX, 3RD FLOOR, KKH ROAD, SHANTINAGAR, BENGALURU-560 027. …RESPONDENTS (BY SRI. USMAN P., ADV. FOR C/R1) Digitally signed by NANJUNDACHARI Location: High Court of Karnataka - 2 - HC-KAR CNR: KAHC010066752026 NC: 2026:KHC:40555-DB WA No. 252 of 2026 THIS APPEAL IS FILED U/S 4 OF THE KARNATAKA HIGH COURT ACT PRAYING TO SET ASIDE THE ORDER PASSED BY THE LEARNED SINGLE JUDGE IN WP NO.30342/2025 DATED 27/10/2025 AND PASS SUCH OTHER SUITABLE ORDERS. THIS APPEAL, COMING ON FOR ORDERS, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE S.G.PANDIT AND HON'BLE DR. JUSTICE K.MANMADHA RAO ORAL JUDGMENT (PER: HON'BLE MR. JUSTICE S.G.PANDIT) Heard learned senior standing counsel Sri.Y.V.Raviraj for appellants/Revenue and learned counsel Sri.Usman.P., for respondent/assessee through video conference. Perused the entire writ appeal papers. 2. The respondent/assessee was before the learned Single Judge questioning Annexure-B – notice issued under Section 148 of the Income Tax Act, 1961 for the assessment year 2019-20 and had also sought for a writ of mandamus directing the BMRCL – second respondent herein to pay compensation in lieu of TDS effected together with interest as applicable from the date of TDS till date. Learned Single - 3 - HC-KAR CNR: KAHC010066752026 NC: 2026:KHC:40555-DB WA No. 252 of 2026 Judge following the decision of the Co-ordinate Bench of this Court in the case of BANGALORE METRO RAIL CORPORATION LIMITED VS. SRI BALAJI CORPORATE SERVICES AND OTHERS in W.A.No.890/2022 and connected matters dated 27.09.2023 allowed the writ petition. 3. In BANGALORE METRO RAIL CORPORATION LIMITED (supra), the Co-ordinate Bench has held that the tax cannot be deducted from the compensation amount paid towards acquisition of land and such person who receives compensation on acquisition of his land would be entitled to claim exemption from payment of income tax. 4. Learned counsel Sri.Y.V.Raviraj for appellants/Revenue would submit that the decision of the Co-ordinate Bench in BANGALORE METRO RAIL CORPORATION LIMITED (supra) is challenged and the same is pending before the Hon'ble Apex Court in SLP(C).No.3799/2024. - 4 - HC-KAR CNR: KAHC010066752026 NC: 2026:KHC:40555-DB WA No. 252 of 2026 5. To the Court’s query, learned counsel for the appellants/Revenue would submit that there is no stay of the judgment of the Co-ordinate Bench. 6. Learned counsel for the respondent No.2 also submits that the order of the learned Single Judge is already complied with, by refunding the tax collected. 7. In the above circumstances, we do not find any error or illegality in the order passed by the learned Single Judge, that too, following the decision of the Co-ordinate Bench in BANGALORE METRO RAIL CORPORATION LIMITED (supra). Accordingly, writ appeal stands rejected. Sd/- (S.G.PANDIT) JUDGE Sd/- (DR.K.MANMADHA RAO) JUDGE NC CT:bms