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TMI Blog2017 (2) TMI 1515X X X X Extracts X X X X X X X X Extracts X X X X ..... ND HARYANA HIGH COURT] Also in case of New India Assurance Co. Ltd [ 2016 (9) TMI 451 - GUJARAT HIGH COURT] insurance company was not justified in deducting tax at source while depositing the compensation in favour of the claimants. It therefore, cannot avoid liability of depositing such amount with the Claims Tribunal. The Claims Tribunal had committed no error in insisting on the insurance company in making good the shortfall - Decided in favour of assessee. - D. B. Income Tax Appeal No. 517 / 2009 - - - Dated:- 1-2-2017 - K. S. Jhaveri And Vinit Kumar Mathur, JJ. For the Appellant : Mr. P.K. Kasliwal Mr. Priyesh Kasliwal For the Respondent : Mr. K.D. Mathur on behalf of Mr. R.B. Mathur JUDGMENT Per Hon ble ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) in his order u/s 201(1) read with Section 194A observed that the company has made payment of ₹ 35,79,826/- towards interest on compensation claims awarded by the MACT to various claimants during the year under consideration. He stated that the company was liable to deduct tax at source u/s 194A on the interest payment so made. 3.1 Counsel for the appellant Mr.Jhanwar has relied upon decision of the Allahabad High Court in Commissioner of Income Tax Vs. the Oriental Insurance Co. Ltd., (2012) 211 Taxman 369 (Allahabad), more particularly para 43, 44 which reads as under: 43. The award under the Motor Vehicle Act is like a decree of the court. It do not come within the definition of income as mentioned in Section 194A(1) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re, be wholly incorrect to read the current provision of sub section (3) of Section 194A to argue that the cases of income credited by way of interest on compensation awarded by the Claims Tribunal is no longer part of sub section (3) for exclusion from purview of sub section (1) of Section 194A. In other words, worded slightly differently. The case of credit of interest on compensation awarded by the Claims Tribunal continues to find place in the exclusion clause contained in sub section (3) of Section 194A. In fact, it would prima facie appear that the ceiling of ₹ 50,000/- per annum for such exclusion is now done away with in case of crediting of interest on compensation awarded by the Claims Tribunal while retaining such limit in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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