TMI Blog2018 (6) TMI 1838X X X X Extracts X X X X X X X X Extracts X X X X ..... der Motor Vehicles Act or Employees' Compensation Act in lieu of death of a person or bodily injury suffered in a vehicular accident, is a damage and not an income and cannot be treated as taxable income. As well settled that interest awarded by the Motor Accident Claims Tribunal on a compensation is also a part of compensation upon which income tax is not chargeable as also held by the Division Bench of this Court in Court on its own motion vs. The H.P. State Cooperative Bank Ltd. And others[ 2014 (10) TMI 972 - HIMACHAL PRADESH HIGH COURT] . The same principle will be applicable in the present case also. Deduction of income tax by petitioner/Insurance Company on the interest accrued/awarded on the compensation deposited by the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the respondents/claimants filed a claim petition being Claim Petition No. 17ECA/2 of 2011/09 under Section 3 of the Workmen Compensation Act (now Employees' Compensation Act) for compensation on account of death of Shri Tikka Ram Tharu, who, while working as a conductor, died in an accident, dated 5 th December, 2009. The Commissioner allowed the petition on 9 th December, 2014, by awarding a sum of ₹ 3,79,592.50/- alongwith 12% interest with effect from 5th January, 2010 till its deposit. The petitioner insurance company, being the insurer, was directed to indemnify the insured. 3. In pursuance to the award, the petitioner insurance company deposited a sum of ₹ 5,68,586/- vide cheque No. 516815, dated 18th March, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... its own motion vs. The H.P. State Cooperative Bank Ltd. And others, reported in 2014 (Suppl.) Him.L.R. (DB) 2575 and reiterated in CWP No. 460 of 2014, titled Shiv Ram Sharma vs. Union of India and others, and other connected matters vide decision dated 3rd June, 2015. The same principle will be applicable in the present case also. 7. Therefore, in view of abovesaid decision, deduction of income tax by petitioner/Insurance Company on the interest accrued/awarded on the compensation deposited by the petitioner/Insurance Company is illegal and is contrary to the law of land. 8. In view of above discussion, this petition is disposed of directing respondent No. 6 Income Tax Officer, Nahan to refund the TDS to the petitioner/Insurance Com ..... X X X X Extracts X X X X X X X X Extracts X X X X
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