2004 (3) TMI 36

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....nable today. Learned advocate Mr. Bharda waives service of rule. The petitioner before this court is the insurance company against whom a decree has been passed by the Motor Accidents Claims Tribunal, Valsad. In the ensuing execution proceeding being Civil Miscellaneous (Execution) Application No. 45 of 2003, the petitioner-insurance company raised objection that the petitioner was not liable t....

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...., the insurance company has preferred the present petition. The learned advocate, Mr. Nanavati, has relied upon section 194A of the Act and has submitted that the Act specifically provides for deduction of tax at source from the amount of interest due and payable by the judgment-debtor on the amount of compensation awarded by the Motor Accidents Claims Tribunal. The learned advocate, Mr. Bha....

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....tory provision. But there is nothing in the Income-tax Act which supports the plea that in respect of the amount payable under a judgment-debt of the nature sought to be enforced, the debtor is entitled to deduct income-tax which may become due and payable by the judgment-creditor on the plea that the cause of action on which the decree was passed was the contract of employment and a part of the c....

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....al year does not exceed fifty thousand rupees." Thus, the provisions of section 194A of the Act have been specifically made applicable to the interest payable on the amount of compensation awarded by the Motor Accidents Claims Tribunal. The said clause has been inserted with effect from June 1, 2003, by the Finance Act, 2003. Admittedly, the amount of interest has been deposited by the petit....