TMI Blog2019 (4) TMI 2063X X X X Extracts X X X X X X X X Extracts X X X X ..... resent one which is being paid to the petitioner, there should not be any income tax deduction thereon at all. This Court is in complete agreement with the ratio laid down by the learned Single Judge of this Court in the above referred decision, and this Court is of the view that in the matters of compensation of this nature, the provisions of income tax cannot be invoked for the purpose of deducting tax at source. Therefore, the deduction by the second respondent appears to be unjust, arbitrary and irrational and also contrary to the beneficial provisions of the Workmen Compensation Act. This Court is of the view that the first respondent is directed to recover a sum of Rs.97,580/- and deposit the same within a period of two weeks fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0/2005, DCL, Erode Writ Petition No.7544/2018, HC, Madras With reference to the above case, we have satisfied the DCL award of Rs.3,85,889/-(without interest) on 15.10.2015 and Rs.6318/-(Rs.2500+interest) on 23.09.2016 in respect of the above case. Now the petitioners filed the Writ Petition for recovering the interest amount of Rs.4,87,902/- from the date of accident i.e., 01.05.2005 to the date of deposit the award amount i.e., 15.10.2015. Hence we forward a Cheque No.755801 dated 18.03.2019 drawn on IOB, Tiruchengode for Rs.3,90,322/- in favour of The Deputy Commissioner of Labour, Coonoor as detailed below: Interest amount Rs.4,87,902.00 Less: TDS @ 20% ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this Court is of the view that a social welfare legislation should prevail since it subserves larger public interest. The Motor Vehicle Act is one such legislation which has been passed with a benevolent intention for compensating the accident victims who have suffered bodily disablement or loss of life and the Income Tax Act which is primarily intended for Tax collection by the State cannot put spokes in the effective and efficacious enforcement of the Motor Vehicles Act. In fact, if one might deeply analyse, it could be seen that there is no direct conflict between any provisions of the Income Tax Act and the Motor Vehicles Act and it is only by the interpretation of the provisions the concept of compulsory payment of TDS has crept into ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion and a Taxation Legislation, Social Welfare Legislation should prevail since it subserves larger public interest and the compensation like the present one which is being paid to the petitioner, there should not be any income tax deduction thereon at all. 8. This Court is in complete agreement with the ratio laid down by the learned Single Judge of this Court in the above referred decision, and this Court is of the view that in the matters of compensation of this nature, the provisions of income tax cannot be invoked for the purpose of deducting tax at source. Therefore, the deduction of Rs.97,580/- by the second respondent appears to be unjust, arbitrary and irrational and also contrary to the beneficial provisions of the Workmen Com ..... X X X X Extracts X X X X X X X X Extracts X X X X
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