TMI Blog2021 (10) TMI 73X X X X Extracts X X X X X X X X Extracts X X X X ..... e entitlement of the interest amount to the awarded amount is ₹ 7000 per claimant, therefore, the same does not exceed ₹ 50,000/- which can be taxable by application of Clause ix (a) of Section 194-A of Income Tax, 1961. This application is allowed and the Registry is directed to release the amount deposited by the non-applicant/Insurance Company, on account of deduction of tax on interest amount in favour applicants-claimants. The amounts shall be released in favour of the applicants/claimants through their counsel on proper identification and verification. The non-applicant/Insurance Company is at liberty to seek withdrawal of the amount so deposited with the Income Tax Department and the Income Tax Department shall rele ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 15 in C. Rev No. 63/2010, perusal whereof reveals that the appellant-Insurance Company has filed civil revision against the order passed by the Motor Accidents Claim Tribunal, Srinagar dated 17th March, 2020 as well as the order dated 31st March, 2010 in Execution Petition No. Misc.41, praying therein for direction to the petitioner to deposit the award amount in terms of the award passed on 26th September, 1995, which was affirmed by the learned Single judge on 23rd November, 2004 and by the Division Bench of this Court in LPA No. 185/2004 dated 8th of May, 2009. The Executing Court, noticing the fact of deposition of ₹ 3,71,724/- on 14th November, 2005, of which intimation was not given to the respondent-claimants, ordered payment o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court have declared the provision supra as harsh and made observations for the concern of the Government to scrap the provision but while doing so, the High Court of Punjab and Haryana, relying on the judgment of the Division of High Court of Himachal Pradesh, has declared the order of the Tribunal in allowing the Insurance Company for deduction of the TDS on the interest amount, as unjust and cruel and while do so, has asked the Insurance Company to release the amount. Mr Reshi, learned counsel further submits that the deduction made by the non-applicant/Insurance company is not in due adherence to the clause ix (a) of Section 194-A of Income Tax Act, 1961, as same has to be applied on the awarded amount proportionately in favour of the c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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