TaxTMI 
TaxTMI 
2010 (11) TMI 1118
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....spondent No. 1 which was numbered as 02/2001, was allowed and compensation of Rs. 82000/- was awarded vide award dated 5.11.2001 against which appeal was filed by the Respondent No. 1 for enhancement which was numbered as MA No. 205/2002. Vide order dated 3.01.2006 this Court remanded the case back as certain documents were filed by the Respondent No. 1 alongwith an application under Order 41 Rule 27 Code of Civil Procedure. After remand, vide award dated 31.3.2006 learned tribunal enhanced the amount awarded to Rs. 1,43,000/- in addition to the amount already awarded as Rs. 82,000/-. Being aggrieved by the remanded award, Appellant and Respondent No. 1 filed appeals which were numbered as MA Nos. 206/ 2006 and 2220/2006. Appeals were dispo....
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....d to claimants has become judgment debt and lost character as interest and Insurance Company was duty bound to deposit the entire amount of judgment debt. It was further held that Clause (ix) of Sub-section (3) has been inserted with effect from 1.06.2003 by the Finance Act, 2003. The amount of interest has been deposited by the Insurance Company on 2.7.2003. It was held that in view of specific provisions contained in Income Tax Act, 1961, the Insurance Company was duty bound to deduct the amount of Income Tax from the amount of interest paid by it. It is submitted that in view of the aforesaid provisions of law, learned tribunal committed error in passing the impugned order. It is submitted that the petition be allowed and the impugned or....
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....d by the Motor Accidents Claims Tribunal where the amount of such income or, as the case may be, aggregate of the amounts of such income credited or paid during the financial year does not exceed fifty thousand rupees. 6. Learned Counsel submits that since the amount of interest was more than 50000/- in the financial year in which it was disbursed therefore, it is statutory duty of the Petitioner/Company to deduct TDS and deposits the same with Income Tax Department. It is submitted that in case Petitioner/Company fails to discharge its duty then the Petitioner/Company is also liable for panel provisions. Reliance is placed on a decision in the matter of New India Assurance Company Ltd. v. Mani and Ors. 270 ITR 394 wherein compensation amo....
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....ion of the land, that being the date on which the land owners right to receive entire compensation arose, though determined and paid later and only interest accruing in each year was assessable in that year. 8. It is submitted that in the facts and circumstances of the case, impugned order passed by the tribunal whereby Petitioner/Company was directed to pay the amount to the Respondent No. 1/claimant which has been deducted on account of TDS is in accordance with law. 9. In the matter of National Insurance Company Ltd. v. Smt. Pratibha @ Rashmi Pandit and Ors.(CR No. 251/2006 decided on 8.2.2007) after placing reliance on a decision in the matter of Mitaben (Supra) this Court has held that since the amount of interest was more than Rs. 5....
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....er held that if such interest income in each financial year together with his/her other income in that year exceeds the taxable limit for that year; claimants may seek necessary refund from the Income Tax Department. 11. Thus the question for consideration in the present case before this Court is regarding the position of law in regard to the deduction of tax at source Under Section 194A from the amount of interest awarded on the amount of compensation under the provisions of Motor Vehicles Act by the Motor Accident Claims Tribunal and particularly whether such interest awarded by the Tribunal is to be spread over from the date from which it is payable to the date of actual payment. 12. Section 194A obliges a person responsible for paying....
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....e question whether the interest awarded is to be spread over for the number of years for which such interest has been awarded, the position of law appears to be fairly well settled by the decision of Supreme Court rendered in connection with award of interest on the amount of compensation under the provisions of Land Acquisition Act. In the case of Ramabai v. CIT reported in (1919) 181 ITR 400, where their Lordships', following the earlier decisions have been held and clarified that the interest cannot be taken to have accrued on the date of order of court granting enhanced compensation but has to be taken as having accrued year after year from the delivery of the possession of the land till the date of such order. The same position has....