Held that where interest component on compensation awarded by Motor Accident Claims Tribunal (MACT) exceeded Rs. 50 thousand and, Insurance Company deducted TDS and deposited same with Central Government, it had carried out mandate of clause (ix) of section 194A and had not committed any illegality, thus, MACT could not have directed Insurance Company to pay said amount yet again for its payment to claimants.
Bajaj Allianz General Insurance Co. Ltd. v. M.A.C.T. Kathua (2022) 286 Taxman 98 (J & K and Ladakh)(HC)
S. 194A : Deduction at source-Interest other than interest on securities-Compensation awarded by Motor Accident Claims Tribunal(MACT)-Compensation exceeded Rs.50 thousand-Tax deducted and deposited-MACT could not have directed Insurance Company to pay said amount yet again for its payment to claimants. [S. 194A(ix), Art. 226]