TaxTMI 
TaxTMI 
2020 (12) TMI 483
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....ssed by Motor Accident Claim Tribunal/Additional District Judge, Court No.3, Jhansi in Motor Accident Claims Petition No. 29 of 2018. 3. Brief facts giving rise to this appeal are that on 6.11.2017 Jai Prakash Mishra on motorcycle bearing Registration No. U.P. 93 AE 9142 was going to Mijhauna via Daboha. Said motorcyle was being driven by his elder brother Virendra Kumar Mishra carefully and slowly at left side. When the motorcycle reached in front of village Gora at Daboha Bhander Road at about 1.35 pm, a Scorpio bearing Registration No. MP 09 V 6431 was coming rashly and negligently from front looking to which Virendra Kumar Mishra stopped motorcycle on kachcha pavement of his left hand despite that said Scorpio dashed hardly motorcycl....
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....8165/- as proposed income tax is against the mandate of law. The reason being income tax liability of concerned claimant to pay tax on interest or the compensation awarded to them shall arise if such interest or income is accrued in concerned financial year together with other income of the respective claimants in that financial year. The judgment of the Apex Court in Ramabai Versus Commissioner of Income Tax, (1990) 181 ITR page 400 will come to the aid of the appellants. Similar is the decision of Gujarat High Court in Civil Application ( For Order) No.10031 of 2006: First Appeal No.1392 of 2006 ( Hansaguri Prafulchandra Ladhani and others Versus Oriental Insurance Company Limited) decided on 4.10.2006 reported in 2007 (2) GLR 1484 which ....
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....ch has been again reiterated and followed by the Bombay High Court in New India Assurance Company Ltd Vs. Hussain Babulal Shaikh and others, 2017 (1) TAC 400 (Bom.) and by this Court in First Appeal From Order No.2935 of 2005, Smt. Balesh Kumari and others Vs. Sahbat Khan and another, dated 25.11.2020, practice of the deduction of TDS by Insurance Company was deprecated. In this case, the Tribunal itself has deducted the amount of income tax, i.e., reason for this appeal which could not have been done. 10. Sri Dube further submits that education cess could not have been deducted, which is vehemently objected by Sri P.K. Sinha, assisted by Sri Ojha making submission that amount has accrued in the year 2019 immediately after the claim peti....
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....f income tax. The reason being that Section 194A (3) (ix) will not permit even the Insurance Company to deduct the same at par. The procedure has already been laid down wayback in the year 2007 by the High Court of Gujrat in the case of Hansaguri (supra), which has been followed by High Court of Bombay in a recent Judgment rendered in the case of New India Assurance Company Ltd Vs. Hussain Babulal Shaikh and others (supra), which has been followed by the undersigned in the case of Smt. Balesh Kumari (supra). 13. When the Income Tax Act and the decisions referred hereinabove do not permit the Insurance Company to deduct TDS, could the Tribunal deduct what is known as tax on the compensation. With utmost respect, the answer is same cannot ....
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.... persons who got money and this amount has to be spread over to the coming years. It is not one time income to them. It is compensation spread over as per the system prevailing. The amount cannot, therefore, be held to be income in one particular year, namely, 2019 when the award came to be passed even if we consider that the period during which the matter remained pending before the Tribunal, the amount has to be bifurcated amongst the legal heirs. Thereafter, the Income Tax Department will have to consider the slabs as they are applicable. As per decision of the Apex Court in Sarla Verma Vs. Delhi Transport Corporation, (2009) 6 SCC 121, the contribution to the family known as multiplicand multiplied by the multiplier which is for the sev....