TaxTMI 
TaxTMI 
2024 (2) TMI 338
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....ich directed the Insurance Company to pay an amount of Rs. 17,126/- being the TDS deducted with interest at the rate of 9% per annum from 29.01.2008 till payment. The Insurance Company, before the Tribunal and before this Court, asserts that there can be no liability cast on the Insurance Company of a like nature. When the amounts are deducted as TDS, from the interest amounts granted in accordance with an award of the MACT, the claimant has to approach the Income Tax Department for a refund. 2. In the present case, we find an infirmity insofar as the Tribunal having passed the order in an application in which the applicant expired when the order was passed. In the present case, a substitution petition has been filed by one Bhola Shah, a....
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....the Pan Card and photo copy for the purpose of deducting income tax at source, which was the liability of the Insurance Company, as per Section 194A(3)(ix) of the Income Tax Act 1961 (hereinafter referred to as the 'Act'). The Division Bench followed a judgment of the Hon'ble Supreme Court in Rama Bai v. Commissioner of Income Tax; [1990] 181 ITR 400, wherein it was held that the interest on enhanced compensation of land compulsorily acquired under the Land Acquisition Act, 1984, on a reference under Section 18 of the Act is deemed to have accrued year after year from the date of delivery of possession of the land and not on the date of the order of the Court. On the same principle, the High Court of Bombay directed the Insurance Companies ....
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....70 ITR 394, the Gujarat High Court in United India Insurance Co. Ltd. Vs. Mitaben Dharmeshbhai Shah & Ors.; [2004] 269 ITR 63 and Section 194A(1) and (3)(ix), to hold that the Insurance Company has a duty to deduct tax when the amount of interest credited or paid during the financial year exceeds Rs. 50,000/-. The order of the District Judge directing refund by the Insurance Company in derogation of the statutory provision was deprecated. 6. We cannot but observe that the Tribunal grossly erred in relying on a decision of the High Court of Bombay while the jurisdictional High Court held otherwise. In any event, with all the respect at our command, we cannot agree with the decision of the Bombay High Court on a plain reading of the provis....
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....e time of payment thereof in cash or by issue of a cheque or draft or by any other mode, be liable for tax deduction at source. Hence, there can be no spread over of the interest income in the years in which it accrued after death of the person, which resulted in the compensation being awarded. We also have to notice subclause (ix) of sub-section(3) of Section 194A, which speaks of such exemption from deduction of tax, from the interest income, when the aggregate amount of such income credited or paid during the financial year exceeds Rs. 50,000/-. Hence, the income has to be found to have accrued only on the date of payment or credit. 8. We have to caution the Tribunals, insofar as the proper procedure being the resort to refund, if at ....