TMI Blog2018 (11) TMI 639X X X X Extracts X X X X X X X X Extracts X X X X ..... issue has arisen one of the group companies of the assessee i.e. Sam Leasco Ltd. wherein Hon’ble Special Court has specifically directed not to deduct TDS. The interest is on account of directions of Special Court and hence, there is no requirement of TDS. Accordingly, find no infirmity in the order of CIT(A) and hence, the same is confirmed. This issue of Revenue’s appeal is dismissed. - ITA No. 2106/Mum/2018 - - - Dated:- 6-11-2018 - SRI MAHAVIR SINGH, JUDICIAL MEMBER For The Appellant : Shri B.S. Bist, DR For The Respondent : Mukul Pandya And Dinkle Hariya, AR s ORDER PER MAHAVIR SINGH, JM: This appeal by the Revenue is arising out of the order of Commissioner of Income Tax (Appeals)-2, Mumbai [in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1) of the I.T. Act? whether on the facts and in the circumstances of the case and in law, the Ld. CIT(A) was correct in allowing the appeal of the assessee and holding that effecting TDS on such payment would have attracted contempt of court, without appreciating that effecting TDS u/s 194A, would not attract contempt, since amount would have been paid fully as TDS certificate of differential amount would be redeemable against tax payable by the deductee or would be refundable if tax was paid in excess? 3. Brief facts are that the assessee is a limited company engaged in the business to act as financial consultant and broker for generating and mobilizing FDs for other companies and corporate loans and that of trading in shares ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m the facts of the case that there was a miscellaneous petition filed by the Custodian for recovery of principle of ₹ 3.25 Crores received from Kenil Worth Investments Pvt Ltd in the earlier year and interest thereon. The Special Court (Trial of Offences relating to transactions in securities.) Ordinances, 1992 passed an order on July 5th, 1995 and directed the assessee to repay within a period of 3 years, the principle amount along with the interest at 20% p.a from March, 1992. The assessee has till date paid ₹ 8,30,12,695/- against the said liability. The balance liability of ₹ 9,25,75,758/- (including ₹ 65,00,000/- provided by way of interest for the year) is reflected as deposit under current liabilities in the b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unt paid or interest thereon made cannot be termed as income and income tax cannot be deducted. It is apt to reproduce paragraphs 3, 8 and 9 hereunder: 3. Before this Court a large number of Appeals have been filed by the Haryana Urban Development Authority and/or the Ghaziabad Development Authority challenging Orders of the National Consumer Disputes Redressal Commission, granting to Complainants, interest at the rate of 18% per annum irrespective of the fact of each case. This Court has, in the case of Ghaziabad Development Authority v. Balbir Singh reported in (2004) 5 SCC 65, deprecated this practice. This Court has held that interest at the rate of 18% cannot be granted in all cases irrespective of the facts of the case. This Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6,470/-. As has been set out by the National Commission in its earlier Judgments and even by this Court, these are cases where amounts are being directed to be paid as compensation for mental harassment and agony and for failure of public duty. In such cases there is no question of deduction of TDS. If TDS has been deducted the Appellants shall, within two weeks from today, forward to the Respondent the amount of TDS deducted along with interest thereon at the rate of 12% from the date it was deducted till payment. And finally, Hon ble High Court held as under: - 23. Having said so, the Circular, dated 14.10.2011, issued by the Income Tax Authorities, whereby deduction of income tax has been ordered on the award amount and intere ..... X X X X Extracts X X X X X X X X Extracts X X X X
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