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 The claimants’ appeals seeking enhancement of compensation were dismissed as withdrawn upon their request.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.
