2021 (1) TMI 890

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.... passed by learned MACT no.1, Jaipur Metropolitan, Jaipur in claim petition no. 459/2001 whereby, partly allowing the claim petition filed by the respondents-claimants, a compensation of Rs. 20,74,680 has been awarded to the claimants on account of death of Shri Maharaj Krishna Fothedar. Learned counsel for the appellant, assailing the findings of the learned Tribunal vide Issue no.4, relying on the judgments of the Hon'ble Apex Court of India in case of National Insurance Company Limited vs. Indira Srivastava and Ors.- 2008(1) T.A.C. 424(S.C.) and Vimal Kanwar & Ors. vs. Kishore Dan & Ors.- 2013 R.A.R. 118 (SC) contended that the learned Tribunal has erred in not deducting the income tax on the compensation payable to the claimants.....

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.... income tax is required to be deducted for determination of the actual salary. But while deducting income-tax from salary, it is necessary to notice the nature of the income of the victim. If the victim is receiving income chargeable under the head "salaries" one should keep in mind that under Section 192(1) of the Income-tax Act, 1961 any person responsible for paying any income chargeable under the head "salaries" shall at the time of payment, deduct income-tax on estimated income of the employee from "salaries" for that financial year. Such deduction is commonly known as tax deducted at source ("TDS" for short). When the employer fails in default to deduct the TDS from employee salary, as it is his duty to deduct the TDS, then the penalt....

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.... of the employee during the said month or Financial Year. In absence of such evidence, it is presumed that the salary paid to the deceased Sajjan Singh as per Last Pay Certificate was paid in accordance with law i.e. by deducting the income-tax on the estimated income of the deceased Sajjan Singh for that month or the Financial Year. The appellants have specifically stated that Assessment Year applicable in the instant case is 1997-98 and not 1996-97 as held by the High Court. They have also taken specific plea that for the Assessment Year 1997-98 the rate of tax on income more than 40,000/- and upto Rs. 60,000/- was 15% and not 20% as held by the High Court. The aforesaid fact has not been disputed by the respondents. 23. In view ....