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TMI Blog2016 (5) TMI 268X X X X Extracts X X X X X X X X Extracts X X X X ..... as deposited by the insurance company with the Income- tax Department, as per the provisions of the Income-tax Act, 1961. 2. This court had appointed Mr. Pankaj Jain, senior advocate as amicus curiae to assist the court whether in cases where the claimants are given compensation in view of the death or injury, the TDS is liable to be deducted or not. 3. Mr. Pankaj Jain, learned senior counsel assisted by Mr. Sachin Bhardwaj, advocate, in support of his contentions relied upon the judgment dated October 15, 2014, passed in CWPIL No. 9 of 2014 titled as Court on its own motion v. H. P. State Co-operative Bank Ltd. and others, to contend that in such cases, the insurance company is not liable to impose TDS. The aforementioned judgment has be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the 1894 Act that additional benefits are available on the market value of the acquired lands under section 23(1A) and 23(2) whereas section 28 is available in respect of the entire compensation. It was held by the Constitution Bench of the Supreme Court in Sunder v. Union of India [2001] 7 SCC 211, that "indeed the language of section 28 does not even remotely refer to market value alone and in terms it talks of compensation or the sum equivalent thereto. Thus, interest awardable under section 28 would include within its ambit both the market value and the statutory solatium. It would be thus evident that even the provisions of section 28 authorise the grant of interest on solatium as well". Thus, "solatium" means an integral part of c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come and was, therefore, not taxable in the assessment year 1956-57. The financial year in which the additional amount came to be withdrawn ended on March 31, 1956. It was held by this court that although award was made on July 29, 1955, enhancing the amount of compensation payable to the assessee, the entire amount was in dispute in the appeal filed by the State. Therefore, there was no absolute right to receive the amount at that stage. It was held that if the appeal was to be allowed in its entirety, the right to payment of enhanced compensation would have fallen altogether. Therefore, according to this court, the extra amount of compensation of Rs. 7,24,914 was not income arising or accruing to the assessee during the previous year rele ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arch 30, 2011, held that compensation received under the Motor Vehicles Act is either on account of loss of earning capacity on account of death or injury or on account of pain and suffering and such receipt is not by way of earning or profit. Award of compensation is on the principle of restitution to place the claimant in the same position in which he would have been had the loss of life or injury has not been suffered. Therefore, I am of the view that the impugned orders calling upon the insurance company to pay the TDS/deduct TDS on the interest part, are not sustainable and are hereby set aside. 9. This court while deciding the aforementioned revision petitions has appreciated the assistance rendered by Mr. Pankaj Jain, senior advocat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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