2004 (3) TMI 36

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..... bunal - Admittedly, the amount of interest has been deposited by the petitioner-insurance company on July 2, 2003, i.e., after June 1, 2003. In view of the aforesaid specific provisions contained in the Income-tax Act, the insurance company was duty bound to deduct the amount of Income-tax from the amount of interest payable by it - decree passed against the petitioner-insurance company by the Motor Accidents Claims Tribunal, shall stand modified accordingly - petition is allowed - impugned order passed by the Motor Accidents Claims Tribunal, Valsad, is quashed and set aside.
Judge(s) : MS. R. M. DOSHIT. JUDGMENT Ms. R. M. DOSHIT J. -Heard the learned advocates. Rule returnable today. Learned advocate Mr. Bharda waives service of ru .....

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..... The learned advocate, Mr. Bharda, has contested the petition and has relied upon the above referred judgment in the matter of Islamic Investment Co. v. Union of India [2004] 265 ITR 254 (Bom) and the judgment of the hon'ble Supreme Court in the matter of All India Reporter Ltd. v. Ramchandra D. Datar [1961] 41 ITR 446. In the said judgment the hon'ble Supreme Court has observed that: " . . . when the claim is merged in the decree of the court, the claim assumes the character of a judgment debt, and to judgment-debts section 18 (of the Income-tax Act) has not been made applicable. The decree passed by the civil court must be executed subject to the deductions and adjustments permissible under the Code of Civil Procedure . . . The rule tha .....

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..... ms Tribunal. The said clause has been inserted with effect from June 1, 2003, by the Finance Act, 2003. Admittedly, the amount of interest has been deposited by the petitioner-insurance company on July 2, 2003, i.e., after June 1, 2003. In view of the aforesaid specific provisions contained in the Income-tax Act, the insurance company was duty bound to deduct the amount of Income-tax from the amount of interest payable by it. The Tribunal is, therefore, not right in relying upon the aforesaid judgment in the matter of Islamic Investment Co. [2004] 265 ITR 254 (Bom). As stated in All India Reporter Ltd. [1961] 41 ITR 446 (SC) "the rule that the decree must be executed according to its tenor may be modified by a statutory provision." In view .....

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