TMI Blog2019 (10) TMI 1516X X X X Extracts X X X X X X X X Extracts X X X X ..... . It is, therefore, needless to say that unless the computation of the interest liable to tax is questioned; normally permission under the said directions should be given as a matter of course. It is, therefore, directed that the Tribunal will consider permission (supra) within 10 days of the receipt of the application accompanied with statement as indicated in Hansagauri [ 2006 (10) TMI 383 - GUJARAT HIGH COURT] This petition succeeds and is allowed. The impugned orders are quashed and set aside. The petitioner shall, make a fresh application to the Tribunal in accordance with the observations made in Hansagauri (supra) as also observations made herein. - R/Special Civil Application No. 16883 of 2019 - - - Dated:- 3-10-2019 - Mr. G ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arbheram Ladhani v. Oriental Insurance Company Limited [2007(2) GLR 1484], which inter alia laid down certain directions to be followed by the Tribunal for deposit of the TDS amount. By order dated 12.04.2019, the Tribunal refused to accept the cheque which was towards Tax Deduction at Source being in sum of Rs.2,20,110/- holding that Prafulchandra (supra) did not issue any direction to the Tribunal to accept the TDS amount. 3. It appears that the aforesaid calculation of Rs.2,20,110/- was made by the Insurance Company in absence of the Pan Cards of the claimants. Subsequently, when they provided the Pan Cards, the TDS was deducted at the rate of 10% and on 20.06.2019 two cheques being in the sum of Rs. 1,01,702/- (without TDS deduction) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ra 14 were issued by this Court : 14. 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 194A of the Act. We, therefore, direct that - I. The Insurance Companies or the owners of the motor vehicles depositing the amounts in compliance with the awards of the Motor Accident Claim Tribunals shall - (a) first spread the interest amount over to the relevant financial years for the period from the date of filing the claim petition till the date of deposit. (b) there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oducing the certificate from the concerned income-tax authority that there is no income-tax liability on the interest which has accrued on the compensation awarded by the Tribunal. (iv) It is clarified that the amount other than the amount liable to be deducted at source under Section 194A(3)(ix) shall be invested/disbursed by the Tribunal. III. When the claimants make applications/ representations before the authority under the Income-tax Act, 1961 for refund of the amount deducted under the provisions of Section 194A(3) (ix) of the Act, the concerned authority shall decide such applications/representations within six months from the date of receipt of the applications/representations. 5. Needless to say that initial obligation t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ompany. In the above directions very clearly separate deposits in regard to the TDS is contemplated; therefore, the insured would be under an obligation to make such separate deposits. However, conjoint reading of the direction in Para 14 makes it clear that the deposits in terms of Para 14- I(b) would be only for the purpose of the necessary permission in terms of Para 14 II(ii) and once such permission is granted by the Tribunal, obviously, the insurer would take back the separate cheque of TDS amount and pay it to the income tax authority and it would be for the claimant to make out a case for refund in terms of Para 14-III. Rest of the amount would be invested in terms of Para 14 II(iv). 10. Needless to say that deposit in terms of P ..... X X X X Extracts X X X X X X X X Extracts X X X X
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