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TMI Blog2016 (6) TMI 240X X X X Extracts X X X X X X X X Extracts X X X X ..... SC 27) to (Menaka Gandhi's case AIR 1978 SC 597). 2. Motor Vehicle Accidents are on the rise everyday due to numerous reasons and loss of life and bodily injury in accident case is ever increasing and the victim can never be restored back to his original shape and live his life normally after he suffers an accident. For this kind of a suffering, the only solace the law can offer to him is payment of compensation. 3. The Courts are also cautious in matters of grant of compensation in Motor Accident cases and generally do not adopt a narrow, pedentic or hyper-technical approach. It is an unwritten norm that in cases of grant of compensation, the Courts have to be liberal and understand the difficulties of the vicim and compensate him a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion that arises for consideration and this Court intends to clarify on this matter further as the same would have serious implications. 7. Before doing so, it is necessary to look into the facts of the present case on hand. The Respondent in the instant Revision Petiion has filed an Execution Petition R.E.P.No.146 of 2010 before the Motor Accident Claims Tribunal, Dharmapuri in M.CO.P.No.879 of 2006 wherein the amount that they are entitled to Rs. 4,23,271/- and in the memo filed before the Motor Accident Claims Tribunal, Rs. 24,017/- has been deducted for TDS. R.E.P.No.146 of 2010 that has been filed was allowed by the Court below and accordingly, the bus belonging to the Revision Petitioner Corporation was attached and the Corporation wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in CDJ 2004 NHC 1575. In all of the above three judgments, it has been held by the Courts that whenever the compensation amount earns interest by reason of delayed payment or otherwise, it is liable to TDS and the exemption could be claimedonly by way of filing the necessary returns before the assessing authority. Hence, on the basis of the above said judgments, the Counsel for the Petitioner prayed that the Revision be allowed. 10. On the contrary, learned counsel for the respondent, Mr.Pappaiah Dharmarajan would submit that order of the Court below is well reasoned and justified and accordingly prayed that the instant revision petition be dismissed. 11. Therefore, reverting to the legal issue involved in the present matter, it has to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ued a circular dated 14.10.2011 whereby deduction of Income Tax has been ordered on the award amount and the interest accrued on the deposits made under the order of the Court in Motor Accident Cases. Taking serious view of this circular, the Division Bench of the Himachal Pradesh High Court took Suo-Moto cognizance of the matter and considered the same as a Public Interest Litigation in the judgment reported in Court on its Motion v. H.P.State Co-operative Bank Ltd & Ors 2014 SCC Online HP 4273 and has quashed the circular and in an elaborate and well considered judgment, His Lordship the Hon'ble Chief Justice Mansoor Ahmed Mir has held that: "13.While going through the said provisions of law, one comes to the inescapable conclusion ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... directed to refund the same, with interest at the rate of 12% from the date of deduction till payment, within six weeks from today". 15. Following the Division Bench Judgment, a learned Single Judge of the Punjab and Haryana High Court, in a recent decision, in New India Assurance Company Ltd. v. Sudesh Chawla and others, CR.No.430 of 2015 (O&M), reiterating the reasoning given by the Division Bench of Himachal Pradesh High Court, has opined that award of compensation is on the principle of restitution to place the claimant in the same position in which he would have been loss of life or injury has not been suffered and accordinly held that the orders calling upon the Insurance Company to pay TDS/deduct Tds on the interest part are not su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th the findings of the Karnataka High Court, the Chattisgarh High Court and this Court cited by the Revision Petitioner. This Court is of the view that the Division Bench judgment of the Himachal Pradesh high Court and the judgment of the Single Judge of the Punjab and Haryana High Court lay down the right law and hence, this Court arrives at the conclusion that the compensation awarded or the interest accruing therein from the compensation that has been awarded by the Motor Accident Claims Tribunal cannot be subjected to TDS and the same cannot be insisted to be paid to the Tax Authorities since the compensation and the interest awarded therein does not fall under the term 'income' as defined under the Income Tax Act, 1961. 19. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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