2009 (12) TMI 964

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.... upon the applicants to furnish the pan card and a photo copy since the respondent no.1 wants to deduct the income tax at source before deposit of decretal amount. 3. Mr. Kotak, the learned Advocate for the applicants has submitted that the applicants are the widow, children and the widow mother of the deceased. They are otherwise not liable to income tax and in any case, the respondents are not entitled to deduction of TDS, since the amount of interest on which the respondent no.1 wants to deduct TDS, has merged into the award. Mr. Kotak relies on a judgment of this Court in Islamic Investment Company v/s. Union of India and Others, 2002 (4) Bom. C. R. 585, where this Court has held that the interest on the decretal amount becomes a part ....

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....by the Court on a reference under section 18 of the Act or on further appeal has to be taken to have accrued not on the date of the order of the Court granting enhanced compensation but as having accrued year after year from the date of delivery of possession of the land till the date of such order and that such interest cannot be assessed to income tax in only lump sum in the year in which the order is made. The Gujarat High Court applied the same principle to interest on compensation awarded by the Motor Accidents Claims Tribunal and observed/held:- "The interest on the compensation awarded by the Tribunal or enhanced compensation awarded by the appellate court cannot be taken to have accrued on the date of the award of Tribunal grantin....

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....ears from the date of claim application till the date of deposit if the interest for any particular financial year exceeds Rs. 50,000/and also request the Tribunal to treat the amount as a separate deposit. (ii) The Tribunal shall ensure that the amount of interest accrued each year is apportioned amongst the claimants on year to year basis. (iii) If the interest payable to any claimant during any particular financial year exceeds Rs. 50,000/-, the Tribunal shall permit the insurance companies/owners to pay over the amount liable to be deducted at source under section 194A( 3)(ix) to the Income Tax Department in respect of that particular claimant for the particular year, without prejudice to the claimant's case that he is not liabl....