2018 (10) TMI 1949

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e consent of learned counsel for the parties, the matter is finally heard. Negation of deduction of amount of Rs.63,934/- from the total amount of compensation, by the petitioner under Section 194-A of the Income Tax Act 1961, is the cause for filing present Writ Petition. The facts not in dispute briefly are that, one Dinesh @ Banti died in road accident on 23.09.2011 while driving the truc....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Compensation on an application for execution of the award. Referring to Section 194-A(1) read with Sub-Section (3) Clause (ix) it is contended that only such income credited or paid by way of interest on the compensation amount awarded by the Motor Accidents Claim Tribunal where the amount of such income or, as the case may be, the aggregate of the amounts of such income credited or paid during....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....i & others : 2011(1) MPLJ 251, that, since the compensation award is to be apportioned amongst the claimant, the interest earned by respective "resident" would be less than Fifty Thousand Rupees; therefore, it was impermissible for the insurance company to have deducted the income thereon at source. These contentions though attractive deserves to be rejected at the outset in absence of any cogent ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... force. Clause (ix) of Sub-Section (3) of Section 194-A envisaged an exception: "(ix) to such income credited or paid by way of interest on the compensation amount awarded by the Motor Accident Claims Tribunal where the amount of such income is credited or paid during the financial year does not exceed fifty thousand rupees." In the case at hand the apportionment of the compensation be....