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2004 (7) TMI 85 - HC - Income TaxPetitioner aggrieved by the order of the trial court, that the insurance company is not entitled to deduct the income-tax at source, and further direction directing it to deposit the entire amount, has challenged the same by way of this revision - trial court without considering the actual effect of the amendment to section 194A of the Income-tax Act, which came into effect from June 1, 2003, had erroneously directed the insurance company to deposit the entire amount including the deduction made statutorily - it is not within the power of the executing court, to direct the insurance company not to deduct the amount and pay the entire amount, thereby compelling the insurance company to commit an illegal act, violating the statutory provisions. For the foregoing reasons, the revision is well founded and the same deserves acceptance. The direction and the order of the trial court are set aside - Petitioner is at liberty to approach the concerned authority, for spreading the income over the period for which payment of interest came to be made, so that the income for the purpose of assessing tax for the relevant assessment year, could be computed and in case, the petitioner is not liable to pay the income-tax, on that score, there is possibility of the petitioner getting refund of the amount.
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