https://www.taxtmi.com/caselaws?id=422022 Interest awarded by the Motor Accident Claims Tribunal as part of compensation for death or bodily injury was held to be restitutionary, not a separate income stream, and therefore not chargeable to tax under the Income-tax Act, 1961. The Court further held that the receipt-based amendments govern timing only where the receipt is otherwise income, so they do not convert such compensatory interest into taxable income. As the amount was not income in the hands of the recipient, the tax deduction machinery under Section 194A could not be invoked, and the insurer was required to deposit the full awarded amount without deduction. en-us Tue, 05 Apr 2022 00:00:00 +0530 Mon, 22 Aug 2022 10:48:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=422022 Interest awarded by the Motor Accident Claims Tribunal as part of compensation for death or bodily injury was held to be restitutionary, not a separate income stream, and therefore not chargeable to tax under the Income-tax Act, 1961. The Court further held that the receipt-based amendments govern timing only where the receipt is otherwise income, so they do not convert such compensatory interest into taxable income. As the amount was not income in the hands of the recipient, the tax deduction machinery under Section 194A could not be invoked, and the insurer was required to deposit the full awarded amount without deduction. Case-Laws Income Tax Tue, 05 Apr 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=422022