2022 (2) TMI 236

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.... Respondent(s) : None ORDER 1. The respondents were sent notices under registered cover on 22nd May, 2017 but the same have not been received back served or un-served. Statutory period is long back over and there is no representation on behalf of the respondent Nos. 1 to 4. They are, therefore, set ex-parte. 2. The order dated 29.03.2017 passed by the Motor Accident Claims Tribunal, Kathu....

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....ection 194-A of the Income Tax Act, 1961, the Insurance Company is duty bound to deduct the tax at source on the interest component of the compensation awarded by the Tribunal where it exceeds Rs. 50,000/- in any financial year. It is submitted that in the instant case the interest component was exceeding Rs. 50,000/- and, therefore, in terms of Section 194-A of the Income Tax Act, the Insurance C....

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....uch income to the account of the payee or at the time of payment thereof in cash, or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct income tax thereon at the rates in force: Provided that: (3) The provisions of sub-section (1) shall not apply:- (i") to (viii) (ix) to such income credited or paid by way of interest on the compens....

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....me in the government treasury. 8. That being the position, the petitioner-Insurance Company has carried out the mandate of Clause (ix) of Section 194-A of the Income Tax Act and has not committed any illegality. 9. Interestingly, the Tribunal has taken note of the fact that the TDS deducted by the petitioner has been deposited and Form-16-A too has been produced, yet the Tribunal has called ....