9911796707
TMI Blog2015 (8) TMI 1551X X X X Extracts X X X X X X X X Extracts X X X X ..... der:-- "1.1 In the claim case filed by the respondents/claimants herein, the Claims Tribunal passed award on 3.5.2002 and thereafter in compliance of the award the petitioner Company deposited the award amount inclusive of interest on 25.6.2003 Rs. 25,000/-, on 14.7.2003 Rs. 27500/- and by cheque dated 28.5.2003, 11.7.2003 and 24.7.2003 Rs. 1,48,612/-, however, the petitioner Insurance Company deducted an amount of Rs. 5124/- on payment of Rs. 51,236/- made to the respondents/claimants on 24.7.2003 as tax deducted at source under the provisions contained in Section 194-A of the Income Tax Act, 1961 (hereinafter refereed to as 'the Act, 1961')." 2. The petitioner/insurer by filing this writ petition has questioned the impugned ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isions contained in clause (ix) of sub-section (3) of Section 194-A of the Act, 1961. Section 194-A has been inserted in the Income Tax Act, 1961 by Finance (No. 2) Act, 1967 with effect from 1st April, 1967. Subsection (1) thereof enjoins upon a person, not being an individual or a Hindu Undivided Family, who is responsible for paying to a resident any income by way of interest other than income to deduct income-tax thereon at the rates in force. Clause (ix) of sub-section (3) of the said Section 194-A reads as under:-- "to such income credited or paid by way of interest on the compensation amount awarded by the Motor Accident Claims Tribunal where the amount of such income or, as the case may be, the aggregate of the amount of such inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to make any deduction at source on an amount paid by way of the interest on the compensation awarded by the Motor Accident Claims Tribunal. In view of the specific provisions contained in the Income Tax Act, the petitioner Company was duty bound to deduct the amount of income-tax from the amount of interest deposited with the Motor Accident Claims Tribunal for being disbursed to the respondents/claimants. 8. In the matter of The New India Assurance Company Limited v. Ramesh Kumar Tamrakar and others 2011 (2) MPHT 61 (CG), it has been clearly held by this Court that in view of the provisions contained in clause (ix) of sub-section (3) of Section 194-A of the Act, if the interest component of the award had been deposited after 1-6-2003, the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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