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TMI Blog2017 (12) TMI 261X X X X Extracts X X X X X X X X Extracts X X X X ..... Rathin P. Raval, learned advocate for the petitioner, Mr.Krishnakumar Munshiram Agrawal, partyinperson - original claimant - respondent No.1, Mr.M.R.Bhatt, learned senior advocate for Mrs.Mauna Bhatt, learned advocate for respondent No.4. 3. The brief facts of the case are that the learned Motor Accident Claims Tribunal had passed judgment and order in M.A.C.P. No.1886 of 2006 and awarded an amount of Rs. 1,20,701/to be paid by the petitioner to the claimant alongwith interest @ of 9% and cost. The petitioner did not prefer appeal and decided to satisfy the award amount of Rs. 1,20,701 + (cost) + 86,130.90 (total interest) to the claimant. 4. The award amount was paid by the respondent Insurance Company after deducting @ 20% TDS as the pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om other sources. Section 206AA provides for requirement to furnish Permanent Account Number. There is also default provision under IT Act providing for penalty for not deducting TDS. Section 201 relates to consequences of failure to deduct or pay. Section 221 prescribes penalty payable when tax in default, Section 200 provides duty of a person deducting tax and Section 234E fee for default in furnishing statements. 8. He has submitted that as evidenced by the TDS certificate, Rs. 16,226/was deducted as TDS in June, 2016. The learned Tribunal has calculated interest upto December, 2016 and hence the amount is Rs. 21,229/as per the learned Tribunal. Lastly, he has submitted that the claimant can always claim the TDS deducted amount from the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aid to respondent No.1 alongwith interest at the rate of 9% and cost. 12. He has submitted that the petitioner having accepted the award of the Tribunal has deposited the principal amount alongwith interest but after deducting TDS @ 20% from the interest amount at the time of depositing of TDS with the learned Claim Tribunal. Thereafter respondent No.1 preferred Execution Petition No.268 of 2016 in M.A.C.P. No.1886 of 2006 praying therein to make payment of TDS deducted and deposited with the Central Government. 13. He has submitted that in similar facts and circumstances of case the Division Bench of this Court in the case of New India Assurance Co. Ltd., vs. Bhoyabhai Haribhai Bharwad reported in 242 Taxmann 415 held as under : "9. Su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s credited or paid by way of interest on compensation amount awarded by Motor Accident Claims Tribunal where the amount of such income or, the aggregate amounts of such income credited or paid during the financial year does not exceed fifty thousand rupees. This provision of Clause (ix) is now divided into two parts and is replaced by Clauses (ix) and (ixa). Clause (ix), in the present form, refers to such income credited by way of interest on the compensation amount awarded by the Claims Tribunal. The case of crediting of interest on compensation therefore, would fall in Clause (ix) as it stands currently. Under Clause (ixa) would fall, any payment of interest on compensation awarded by the Claims Tribunal where the amount of such income o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ribunal had committed no error in insisting on the insurance company in making good the shortfall. 13. At this stage, the learned counsel for the petitioner drew our attention to the order dated 05.03.2012 passed by this Court in Civil Application No.2592 of 2012, in which, the insurance company had deposited with the Income Tax Department a sum of Rs. 7,91,971/by way of tax on compensation of Rs. 34,39,070/awarded by the Claims Tribunal. This Court allowed the claimants to seek refund of such amount from the Income Tax Department and permitted the insurance company to receive it back from the claimants as and when such refund would be made by the Income Tax Department. However, in the present case, we are not inclined to accept such a f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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