2014 (9) TMI 48

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....Claim Tribunal, Kheda at Nadiad and respondent No.3 to deposit the amount of Rs. 40,094/deducted as tax at source with the Tribunal in the name of the claimants forthwith in the case of Motor Accident Claim Petition No.1076 of 1995 and         (ii) further be pleased to direct the Tribunal to disburse the said amount in favour of the petitioners forthwith;     7(C) To issue appropriate writ, order or directions         (i) Directing all the Motor Accident Claim Tribunals across the State of Gujarat and the Income Tax Department to abide by and strictly comply with directions given by this Hon'ble Court (Coram: M/s. M.S. Shah and K.M. Mehta, JJ.) vi....

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....amount of Rs. 3,97,001/received by the claimants towards the interest on the compensation awarded by the learned Tribunal, the insurance company has deducted the TDS of Rs. 40,494/and has deposited with the Income Tax Department. It is the case on behalf of the petitioners that therefore the aforesaid action on the part of the insurance company is absolutely contrary to the decision of the Division Bench of this Court dated 04.10.2006 passed in Civil Application No.10031/2006 in First Appeal No.1392/2006. 2. We have heard Shri Nirav Thakkar, learned advocate appearing on behalf of the petitioners - original claimants and Shri Daxesh Thakkar, learned advocate appearing on behalf of the respondent insurance company. We have also gone throu....

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....rom the date of filing the claim petition till the date of deposit.         (b) thereafter, if the interest for any particular financial year exceeds Rs. 50,000/, separately deposit before the Tribunal the amount liable to be deducted at source under the provisions of Section 194A(3)(ix) of the Income Tax Act, 1961. Such amount shall not, however, straightaway, be paid over to the Incometax department.         (c) produce before the Tribunal a statement of computation of interest by spreading the amount over the relevant years from the date of claim petition till the date of deposit if the interest for any particular financial year exceeds Rs. 50,000/and also reques....

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....s before the authority under the Incometax Act, 1961 for refund of the amount deducted under the provisions of Section 194A(3)(ix) of the Act, the concerned authority shall decide such applications/representations within six months from the date of receipt of the applications/representations." The Division Bench has issued the further following directions.             "In the facts of the present case, since the Insurance Company had deducted tax on compensation under Section 194A(3)(ix) of the Act by treating the entire interest amount as one lumpsum amount, we direct that after giving the claimants the details of the amounts of interest spread over the relevant financial years a....