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2016 (5) TMI 268 - PUNJAB AND HARYANA HIGH COURTTDS liability on compensation in view of the death or injury - insurance company has been called upon to pay the amounts of TDS deducted on the interest income which was deposited by the insurance company with the Income tax Department - Held that:- There is force in the contention raised on behalf of the petitioner that the claimants are liable to pay double the tax, one on receipt of compensation which would be added in the income and the other where TDS would be deducted by the insurance company, thus, it amounts to putting an onerous liability on the taxpayers as they are liable to pay tax two times. The payment of compensation on account of death and injury is not a business transaction or a receipt of any charges on account of services rendered by any other party. Compensation received under the Motor Vehicles Act is either on account of loss of earning capacity on account of death or injury or on account of pain and suffering and such receipt is not by way of earning or profit. Award of compensation is on the principle of restitution to place the claimant in the same position in which he would have been had the loss of life or injury has not been suffered. Therefore, the impugned orders calling upon the insurance company to pay the TDS/deduct TDS on the interest part, are not sustainable and are hereby set aside. - Decided against revenue
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