9911796707
TMI Blog2022 (2) TMI 236X X X X Extracts X X X X X X X X Extracts X X X X ..... rate of 20% as TDS and deposited the same in the government treasury. That being the position, the petitioner-Insurance Company has carried out the mandate of Clause (ix) of Section 194-A of the Income Tax Act and has not committed any illegality. Tribunal has taken note of the fact that the TDS deducted by the petitioner has been deposited and Form-16-A too has been produced, yet the Tribunal has called upon the Insurance Company to deposit the amount again with it so that same is disbursed to the claimants. The approach adopted by the Tribunal is not countenanced by law. The amount deducted at source as a tax on the interest component is deposited with the government treasury is the money deposited for and on behalf of the income tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tax Act, 1961, the Insurance Company is duty bound to deduct the tax at source on the interest component of the compensation awarded by the Tribunal where it exceeds ₹ 50,000/- in any financial year. It is submitted that in the instant case the interest component was exceeding ₹ 50,000/- and, therefore, in terms of Section 194-A of the Income Tax Act, the Insurance Company deducted a sum of ₹ 44,662/- on account of TDS and deposited the same with the Central Government. Learned counsel for the petitioner, therefore, submits that the Tribunal could not have directed the Insurance Company to pay the said amount yet again for its payment to the claimants. 5. Having heard learned counsel for the petitioner and perused the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the claimants, the Insurance Company deducted income tax at the rate of 20% as TDS and deposited the same in the government treasury. 8. That being the position, the petitioner-Insurance Company has carried out the mandate of Clause (ix) of Section 194-A of the Income Tax Act and has not committed any illegality. 9. Interestingly, the Tribunal has taken note of the fact that the TDS deducted by the petitioner has been deposited and Form-16-A too has been produced, yet the Tribunal has called upon the Insurance Company to deposit the amount again with it so that same is disbursed to the claimants. The approach adopted by the Tribunal is not countenanced by law. The amount deducted at source as a tax on the interest component is de ..... X X X X Extracts X X X X X X X X Extracts X X X X
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