High Court Bombay
Mrs. Gauri Deepak Patel & Ors vs New India Assurance Co. Ltd. & Anr on 17 December, 2009
JUDGEMENT
S. J. Katha Walla, J. - (1.)The applicants are the widow, two minor children and the mother of the deceased.
This Court had directed the respondents to deposit the amount of money awarded to the applicants and has further directed the applicants to withdraw the amount of Rs. 13,00.000/ from the amount deposited by the respondents.
(2.)It appears that the respondent no.l caled upon the applicants to furnish the pan card anda photo copy since the respondent no.l wants to deduct the income tax at source before deposit of decretal amount.
(3.)Mr. Kotak, the learned Advocate for the applicants has submitted that the applicants are the widow, children and the widow mother of the deceased. They are otherwise not liable to income tax and in any case, the respondents are not entitled to deduction of TDS. since the amount of interest on which the respondent no.1 wants to deduct TDS, has merged into the award. Mr. Kotak relies on a judgment of this Court in Islamic Investment Company Vs. Union of India and Others, 2002 4 BCR 685. where this Court has held that the interest on the decretal amount becomes a part of the Judgment and no deduction can be made therefrom except Such deductions as are permissible under the Civil Procedure Code, 1908. However, this decision shall not apply to the present case since in that case, the decretal amount along with interest had already been paid to the Sheriff of Bombay in execution and had assumed the character of a judgment debt and The Income Tax Act did not provide for the deduction in question in that case. We find that a deduction from an award of the Motor Accidents Claims Tribunal is contemplated by section 194A(3)(ix) of the Income Tax Act, 1961.
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