TMI Blog2021 (9) TMI 1510X X X X Extracts X X X X X X X X Extracts X X X X ..... divided family, responsible for paying to a resident any income by way of interest, other than income by way of interest on securities, shall deduct income tax on such income at the time of payment thereof in cash or by issue of cheque or by any other mode. Compensation awarded under Motor Vehicle Act cannot be said to be taxable income. Compensation is awarded in lieu of death of a person or bodily injury suffered in a vehicular accident, which is damage and not income. It is 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 as titled Court On Its Own Motion v. the H.P. State Cooperative Bank Limited [ 2014 (1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... execution petition preferred by the claimants/respondents for payment of balance amount of compensation, the Motor Accident Claims Tribunal, vide impugned order, has directed petitioner/Insurance Company to deposit the balance amount of Rs. 45,804/- within 45 days from the date of order, failing which warrant of attachment of movable and immovable property of petitioner has been ordered to be issued. 3. Section 194-A of Income Tax Act, 1961, clearly provides that any person, not being an individual or a Hindu undivided family, responsible for paying to a resident any income by way of interest, other than income by way of interest on securities, shall deduct income tax on such income at the time of payment thereof in cash or by issue o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from the Income Tax Department to the claimants/respondents, within two weeks from the date of receipt of refund, failing which petitioner company shall also be liable to pay interest @ 9% per annum on the said amount with effect from 20.6.2018 till payment/deposit. Interim order dated 25.09.2018 passed in CMP No. 9331 of 2018 also stands vacated in above terms. The Motor Accident Claims Tribunal-IV, Shimla H.P. is directed to proceed further accordingly. Petition is disposed of in the aforesaid terms, so also pending application(s), if any. No order as to costs. The petitioner is permitted to produce copy of order downloaded from the High Court website and the concerned authorities shall not insist for certified copy of the order ..... X X X X Extracts X X X X X X X X Extracts X X X X
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