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2024 (9) TMI 737 - HC - Income TaxUniform procedure for deduction of TDS in MACP compensation cases by Motor Accident Claims Tribunals in Gujarat - as submitted that the petitioner deducted the TDS and has placed on record TDS Certificate obtained from the Income Tax Department to show that petitioner has already paid the amount and, therefore, it is for the claimants to get the refund of the TDS deducted by the petitioner which may be contrary to decision of this Court - HELD THAT - At the relevant point of time when the petitioner deducted the TDS as per Section 194A(3) of the Income Tax Act, the decision of this Court was not available. As considered the submissions of learned advocate Mr.Rathin Raval and also perused various orders passed by the Tribunals. It goes without saying that the decision of this Court is binding upon the sub- ordinate Courts and it is for the Tribunal to consider the same, however, we cannot issue general directions to all the Tribunals and the petitioner has to challenge individual case where direction is contrary to the decision of this Court as fact of each case would be different. We do not entertain this petition with a liberty to petitioner to challenge the individual orders in accordance with law. This petition is accordingly disposed of.
Issues:
1. Uniform procedure for deduction of TDS in MACP compensation cases by Motor Accident Claims Tribunals in Gujarat. 2. Compliance with the guidelines issued by the High Court in a specific judgment. 3. Discrepancies in the directions issued by different Tribunals in the State of Gujarat. 4. Refund of TDS deducted by the petitioner Insurance Company. 5. Applicability of the decision of the High Court when TDS was deducted. 6. Binding nature of the High Court decision on subordinate Courts. Analysis: 1. The petitioner sought relief for uniformity in the deduction of Tax Deducted at Source (TDS) in MACP compensation cases by Motor Accident Claims Tribunals in Gujarat, citing a specific judgment of the High Court. The petitioner argued that the Tribunals were not following a consistent procedure as per the guidelines laid down by the High Court in a previous case. 2. The High Court referred to a judgment rendered in a specific case where it was established that compensation received under the Motor Vehicles Act is not taxable under the Income Tax Act. The Court clarified that interest awarded in motor accident claim cases is not considered income and, therefore, is not subject to tax. The Court emphasized that Insurance Companies should deposit the full amount without deducting tax on the interest awarded by the Tribunals. 3. The petitioner highlighted discrepancies in the directions issued by different Tribunals in Kachchh-Bhuj, Anand, and Rajkot, leading to challenges in following the decisions of the Tribunals. The petitioner faced difficulties in complying with various orders due to the lack of uniformity in the Tribunal's directives. 4. The petitioner had already deducted TDS and obtained a TDS Certificate from the Income Tax Department. The petitioner argued that claimants should seek refunds for the TDS deducted, which contradicted the High Court's decision. The Court noted that at the time of TDS deduction, the specific High Court decision was not available. 5. The Court emphasized that the decisions of the High Court are binding on subordinate Courts and Tribunals. While acknowledging the petitioner's concerns, the Court stated that challenges to individual orders should be made on a case-by-case basis, as each case may present unique circumstances. 6. Ultimately, the Court disposed of the petition, denying the request for general directions to all Tribunals. The petitioner was granted the liberty to challenge individual orders that were contrary to the High Court's decision, emphasizing the need for specific challenges based on the facts of each case. This detailed analysis outlines the issues raised in the judgment, the arguments presented by the petitioner, the High Court's interpretation of relevant laws and guidelines, and the Court's decision regarding the petition for uniformity in TDS deduction procedures by Motor Accident Claims Tribunals in Gujarat.
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