TMI Blog2024 (2) TMI 338X X X X Extracts X X X X X X X X Extracts X X X X ..... ourt, asserts that there can be no liability cast on the Insurance Company of a like nature - applicant is said to have died on 02.04.2015 and the order was passed on 09.02.2018, after the death - substitution petition has been filed by one Bhola Shah, aged about 41 years, son of Late Babulal Sah, the applicant before the Tribunal. HELD THAT:- As per Section 194A(1), any income by way of interest other than income by way of interest on securities shall at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, be liable for tax deduction at source. Hence, there can be no spread over of the interest income in the years in which it accrue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e same shall stand closed as not maintainable. - Honourable The Chief Justice And Honourable Mr. Justice Partha Sarthy For the Petitioner/s : Mr.Ashok Priyadarshi, Advocate For the Respondent/s : Mrs.Archana Sinha @ Archana Shahi, Advocate ORDER (PER: HONOURABLE THE CHIEF JUSTICE) The Insurance Company in the above writ petition challenged the order of the Motor Accidents Claims Tribunal, Muzaffarpur (hereinafter referred to as the Tribunal ) which directed the Insurance Company to pay an amount of Rs. 17,126/- being the TDS deducted with interest at the rate of 9% per annum from 29.01.2008 till payment. The Insurance Company, before the Tribunal and before this Court, asserts that there can be no liability ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... High Court in Gauri Deepak Patel Ors. V. New India Assurance Co. Ltd. Anr.; 2011 ACJ 1782. Therein the widow, two minor children and mother of the deceased approached the Motor Vehicle Accident Tribunal for compensation. In the proceedings before the High Court, it was directed that the money awarded to the claimants be deposited and the claimants allowed to withdraw a certain portion of the amount. The respondent-Insurance Company then directed the applicant to furnish the Pan Card and photo copy for the purpose of deducting income tax at source, which was the liability of the Insurance Company, as per Section 194A(3)(ix) of the Income Tax Act 1961 (hereinafter referred to as the Act ). The Division Bench followed a judgment of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Insurance Co. Ltd. Vs. Union of India and connected cases. In the order dated 20.09.2013 on similar directions issued by the Tribunal, it was found that the Tribunal had ignored the statutory duty conferred upon the Insurer under Section 194(1)[sic- 194A(1)]. Following the said judgment, by order dated 05.02.2015, another Division Bench elaborately considered the matter, especially relying on decisions of the Madras High Court in New India Assurance Co. Ltd. vs. Mani Ors. [2004] 270 ITR 394 , the Gujarat High Court in United India Insurance Co. Ltd. Vs. Mitaben Dharmeshbhai Shah Ors.; [2004] 269 ITR 63 and Section 194A(1) and (3)(ix), to hold that the Insurance Company has a duty to deduct tax when the amount of interest credited or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or 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 credited or paid during the financial year does not exceed fifty thousand rupees. 7. As per Section 194A(1), any income by way of interest other than income by way of interest on securities shall at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, be liable for tax deduction at source. Hence, there can be no spread over of the interest income in the years in which it accrued after death of the person, which resulted in the compensa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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