Case Law Details
Anaar Singh Vs Jaikrishnan (Rajasthan High Court)
The Rajasthan High Court decided four appeals arising from the common judgment and award dated 31.10.2019 passed by the Motor Accident Claims Tribunal, Jhalawar in Claim Case Nos. 98/2017 and 200/2016. The claimants’ appeals seeking enhancement of compensation were dismissed as withdrawn upon their request.
In the Insurance Company’s appeals, the only issue raised was that the Tribunal had not deducted tax on the interest accrued on the award amount. The Insurance Company submitted that tax should be deducted in terms of Section 194A(3)(ix) of the Income Tax Act, 1961, and sought modification of the award to that extent. Counsel for the claimants did not oppose the request and supported the prayer.
Considering the limited issue and the consensus between the parties, the High Court partly allowed the Insurance Company’s appeals. It directed that tax should be deducted on the interest amount and held that the Insurance Company is at liberty to deduct tax on the interest in accordance with law. All pending applications were disposed of.
FULL TEXT OF THE JUDGMENT/ORDER OF RAJASTHAN HIGH COURT
1. Learned counsel-Mr. Tripurari Sharma puts in appearance and accepts notice on behalf of the Insurance Company in S.B. C.M.A. Nos.1559/2020 and 1344/2020.
2. The present appeals have been filed against the common judgment and award dated 31.10.2019 passed by learned Motor Accident Claims Tribunal, Jhalawar, District Jhalawar (hereinafter referred to as learned ‘Tribunal’) in Claim Case Nos.98/2017 and 200/2016, whereby, the claim petitions filed by the claimants were partly allowed and the non-claimants were held jointly and severally liable to pay the award amount.
3. As these appeals have been filed against the common judgment and award, the same are being heard and decided by the instant common judgment.
4. The claimants have filed S.B. Civil Miscellaneous Appeal Nos.1559/2020 and 1344/2020 for enhancement of the impugned award; whereas, Insurance Company has filed S.B. Civil Miscellaneous Appeal Nos.364/2020 and 519/2020 for quashing and setting aside the impugned judgment and award.
5. At the very outset, learned counsel appearing on behalf of the claimants wants to withdraw S.B. Civil Miscellaneous Appeal Nos.1559/2020 and 1344/2020.
6. In view of the prayer made on behalf of learned counsel appearing on behalf of the claimants, S.B. Civil Miscellaneous Appeal Nos.1559/2020 and 1344/2020 are dismissed as withdrawn.
7. So far as S.B. Civil Miscellaneous Appeal Nos.364/2020 and 519/2020 are concerned, learned counsel for the Insurance Company submits that learned Tribunal vide the impugned judgment and award dated 31.10.2019 has erred in not deducting tax on the interest accrued on the award amount; however, the same should be deducted as per the provision of Section 194(a) (3)(9) of the Income Tax Act, 1961, therefore, learned counsel for the Insurance Company prays that the impugned judgment and award dated 31.10.2019 may be quashed and set aside to the extent of non-deduction of the tax on the interest amount, and it may be ordered that income tax be deducted on the amount of interest.
7. Learned counsel appearing on behalf of the claimants has not objected to the prayer made by learned counsel for the Insurance Company; rather, he supports the same.
8. Heard learned counsel for the parties and perused the material available on record.
9. In view of the limited prayer made on behalf of learned counsel for the Insurance Company and the same is also agreeable to learned counsel for the claimants, S.B. Civil Miscellaneous Appeal Nos.364/2020 and 519/2020 are partly allowed to the extent that the tax should be deducted on the amount of interest. The Insurance Company is at liberty to deduct the tax on the interest amount in accordance with law.
10. Any other applications stand disposed of.
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