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2013 (10) TMI 786 - HC - Income TaxTDS on interest paid on compensation - Whether the TDS under the Income Tax Act, 1961 has to be deducted at the source at the rate of 10% or the TDS can only be deducted after spreading it over the number of period for which the payment was made –Held that:- As per the decision of the Apex court in the case of Bikram Singh and others v. Land Acquisition Collector and others [1996 (9) TMI 6 - SUPREME Court], appellants are entitled to spread over the income for the period for which payment came to be made so as to compute the income for assessing tax for the relevant accounting year - As per division bench of Gujarat High Court in the case of Hansaguri Prafulchandra Ladhani and others v. Oriental Insurance Co. Ltd [2006 (10) TMI 383 - GUJARAT HIGH COURT], it is necessary to obviate such a situation in future for other claimants who may be awarded compensation with interest thereon, and the amount of interest being deposited exceeds Rs. 50,000 but who may not be liable to have any tax deducted at source as per the interpretation placed by us on the provisions of section 194-A of the Act - If the interest for any particular financial year exceeds Rs. 50,000, separately deposit before the Tribunal the amount liable to be deducted at source under the provisions of section 194-A(3)(ix) of the Income Tax Act, 1961 - In view of the conflicting opinion expressed in the two Division Benches, the matter is reffered to the Larger bench of the Tribual.
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