https://www.taxtmi.com/caselaws?id=434411 Interest awarded on motor accident compensation for the period up to the award or, in appeal, up to the High Court judgment is not taxable in the hands of the claimant, so tax deduction at source on that component was impermissible and had to be refunded. Section 194A of the Income-tax Act is only a deduction-at-source mechanism and cannot create taxability where the receipt is otherwise not income. Interest accruing after the High Court judgment was treated as taxable income from other sources, and deduction of tax on that post-judgment interest was permissible. en-us Wed, 08 Feb 2023 00:00:00 +0530 Thu, 23 Feb 2023 05:29:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=434411 Interest awarded on motor accident compensation for the period up to the award or, in appeal, up to the High Court judgment is not taxable in the hands of the claimant, so tax deduction at source on that component was impermissible and had to be refunded. Section 194A of the Income-tax Act is only a deduction-at-source mechanism and cannot create taxability where the receipt is otherwise not income. Interest accruing after the High Court judgment was treated as taxable income from other sources, and deduction of tax on that post-judgment interest was permissible. Case-Laws Income Tax Wed, 08 Feb 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=434411