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2018 (3) TMI 1972

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..... to release an amount which was deducted as TDS and pay the same to the claimants. Further, it was ordered that the difference of interest amount of ₹ 333/- shall also be released to the claimants - HELD THAT:- At the first instance, the tax on the interest of compensation is to be deducted at source in the financial year, in which it is received. Secondly, in a case pertaining to interes .....

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..... ent of compensation. It being so, the impugned order passed by the Commissioner, Employee's Compensation Act, 1923, Hisar, Circle at Hisar, is hereby set aside leaving the claimants to file income tax return and claim the refund, if permissible under the law. - CR No. 5223 of 2016 (O&M) - - - Dated:- 23-3-2018 - Mr. Kuldip Singh, J. Mr. R.C. Kapoor and Mr. Rahul Pathania, Advoca .....

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..... (for short 'the Act'), the income tax is to be deducted at source. Under Section 56(2)(viii) of the Act, the income by way of interest received on the compensation or enhanced compensation referred to Clause b of Section 145A of the Act is to be treated as income from other sources. Section 145 A(b) of the Act provides that the interest received by an assessee on the compensati .....

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..... xxxxxxxxxxxxxxxxxxxxxxxx Section 194 (ixa) to such income paid by way of interest on the compensation amount awarded by the Motor Accidents Claims Tribunal where the amount of such income or, as the case may be, the aggregate of the amounts of such income paid during the financial year does not exceed fifty thousand rupees; The combined reading of above Sections goes to sh .....

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..... Company had deducted the tax at source on the interest component, they cannot be directed to again pay the tax deducted at source to the claimants, since the same was lawfully deducted for the payment of compensation. It being so, the impugned order dated 04.04.2016 (Annexure P-1) passed by the Commissioner, Employee's Compensation Act, 1923, Hisar, Circle at Hisar, is hereby set aside l .....

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