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2018 (10) TMI 1949 - HC - Income TaxTDS liability on Insurance company - TDS u/s 194A - interest paid to the owners of the land acquired - payment of interest for belated payment of compensation for the land acquired - deduction of the payment of interest at source under section 194-A by the Land Acquisition Collector - HELD THAT:- In the case at hand the apportionment of the compensation being not established and since the income from interest exceeds fifty thousand rupees during financial year, the act of the insurance company in deducting the income tax at source cannot be faulted. The issue as to whether the expression Accident Claims Tribunal can be treated to be a Commissioner, Employees' Compensation is kept open to be decided in appropriate case. In view of above analysis, since it was obligatory on the part of the insurance company under Section 203 of 1961 read with Section 194-A(3)(ix) of 1961 Act to deduct the income tax at source on income from interest which exceeded fifty thousand rupees during financial year when it is paid, the impugned order directing the petitioner/insurance company to deposit the amount so deducted is set aside.
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