2017 (2) TMI 1515

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....nt has admitted the appeal on 11.11.2009 has framed the following substantial question of law: "(i) Whether, on the facts and in the circumstances of the case the Tribunal was justified in holding penallty of Rs. 384497/- u/s.217C of the Income Tax Act 1961 against the appellant and treated the appellant as defaulter u/s. 194A/201(1) of the Act, such conclusion is legally sustainable?" 2. Counsel for the appellant has contended that the issue is squarely covered by the decision of this Court in DB Income Tax Appeal No.137/2003 in the case of Divisional Manger, New India Assurance Company Ltd. vs. The Dy. Commissioner of Income Tax (TDS), Income Tax Office, decided on 22.11.2016 and more particularly in para 3 to 6, this court ha....

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....debt payable by the insurance company. Even in the MAC award, there is no direction of any court that before paying the award, the insurance company is required to deduct the tax at source. In view of All India Reporter Ltd. Vs. Ramchandra D. Datar (supra), if no provision has been made in the decree for deduction of tax, before paying that debt, the insurance company cannot deduct the tax at source from the amount payable to the legal heirs of the deceased. 44. In Commissioner of Income Tax Vs. Chiranji Lal Multani Mal Rai Bahadur (P.) Ltd. (supra), Ghaziabad Development Authority Vs. Dr. N.K. Gupta (supra), Commissioner of Income-tax Vs. H.P. Housing Board (supra), Commissioner of Income-tax Vs. Sahib Chits (Delhi) (Pvt.) Ltd. (s....