Loading judgment…
No AI summary yet for this case.
- 1 -
WP No. 1067 of 2019
IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 10TH DAY OF OCTOBER, 2022 BEFORE THE HON'BLE MR JUSTICE M.NAGAPRASANNA WRIT PETITION NO. 1067 OF 2019 (GM-RES)
BETWEEN: THE UNION OF INDIA BY ITS GENERAL MANAGER SOUTH WESTERN RAILWAY HUBLI – 23. …PETITIONER (BY SRI.ABHINAY H.T., ADVOCATE)
AND:
KUBERA NAI SINCE DEAD BY HIS LRS SMT. HALI BAI W/O LATE KUBERA AGED ABOUT 36 YEARS. 2. KUMARI SUMA D/O LATE KUBERA NAI AGED ABOUT 22 YEARS. 3. LOKESH NAIK S/O LATE KUBERA NAI AGED ABOUT 20 YEARS. ALL ARE RESIDING AT RD KAVAL HOLALKERE TALUK
Digitally signed by PADMAVATHI B K Location: HIGH COURT OF KARNATAKA
- 2 -
WP No. 1067 of 2019
CHITRADURGA DISTRICT – 577 002. …RESPONDENTS (RESPONDENTS SERVED) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ORDER DTED 21.03.2018 PASSED BY THE RAILWAY CLAIMS TRIBUNAL, BENGALURU BENCH IN EXECUTION APPLICATION NO.17/2017 (ANNEXURE-A).
THIS WRIT PETITION, COMING ON FOR PRELIMINARY HEARING IN ‘B’ GROUP, THIS DAY, THE COURT MADE THE FOLLOWING: ORDER
The petitioner – Union of India is before this Court calling in question an order dated 21.03.2018, passed by the Railway Claims Tribunal, Bengaluru (for short ‘the Tribunal’) in Execution Application No.17/2017, whereby, the Tribunal restrained the Railways from deducting ‘tax deducted at source’ (for short ‘TDS’) awarded by the Tribunal.
Heard Sri Abhinay Y.T., learned counsel for the petitioner. The respondents – claimants are served and unrepresented.
- 3 -
WP No. 1067 of 2019
Brief facts of the case that leads the petitioner to this Court as borne out from the pleadings are as follows: On 19.03.2015, one Kubera Nai, suffers injuries and for the injuries that happened, leads the injured to file a claim application before the Railway Claims Tribunal. During the pendency of the claim petition, the injured succumbed to such injuries which were sustained in the accident. The legal representatives were brought on record and the compensation was awarded by the Tribunal in terms of its order dated 30.01.2017, at a sum of Rs.8,00,000/- along with interest at 6% p.a. from the date of the application and 9% p.a. from the date of the order. The compensation was worked out by the Railways and the compensation paid to the tune of Rs.8,79,077/- along with the interest component of Rs.79,097/-.
- 4 -
WP No. 1067 of 2019
After the receipt of the said amount, an execution application was preferred by the legal representatives of the deceased before the Tribunal in Execution Application No.17/2017 and the Tribunal directs the Union of India not to deduct TDS from the compensation amount awarded to the claimants. The direction so rendered by the Tribunal is what drives the Union of India to this Court in the subject petition.
The petition having been entertained, this Court by an order dated 08.04.2019, has stayed the impugned order passed by the Tribunal.
Learned counsel for the petitioner would contend that in terms of Section 194A of the Income Tax Act, the TDS cannot be deducted from the compensation amount awarded by the Motor Accident Claims Tribunal and the Tribunal which has awarded the compensation in the case
- 5 -
WP No. 1067 of 2019
at hand, is the one exempted in terms of the provisions of Railways Act and therefore, the order is contrary to law.
I have given my anxious consideration to the submissions made by the learned counsel for the petitioner and perused the material on record.
The afore-narrated facts are not in dispute. The only point that arise for my consideration is, whether the order dated 21.03.2018, passed by the Tribunal in Execution Application No.17/2017, is tenable in law.
Section 194A of the Income Tax Act reads as follows: “Section 194A-Interest other than "Interest on securities"
(1) Any person, not being an individual or a Hindu undivided family, who is responsible for paying to a resident any income by way of interest other
- 6 -
WP No. 1067 of 2019
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, whichever is earlier, deduct income- tax thereon at the rates in force.
[Provided that an individual or a Hindu undivided family, whose total sales, gross receipts or turnover from the business or profession carried on by him exceed the monetary limits specified under clause (a) or clause (b) of section 44AB during the financial year immediately preceding the financial year in which such interest is credited or paid, shall be liable to deduct income-tax under this section.] Explanation: For the purposes of this section, where any income by way of interest as aforesaid is credited to any account, whether called "Interest payable account" or "Suspense account" or by any other name, in the books of account of the person liable to pay such income, such crediting shall be deemed to be credit of such income to the account of the payee and the provisions of this section shall apply accordingly.
(2) la[***]
(3) The provisions of sub-section (1) shall not apply - xxxxx (ix) to such income credited by way of interest on the compensation amount
- 7 -
WP No. 1067 of 2019
awarded by the Motor Accidents Claims Tribunal;
(Emphasis supplied)
In terms of the afore-quoted provision of law, the compensation awarded to the claimants by the Motor Accident Claims Tribunal would not come within the purview of afore-quoted Section 194A of the Act and any other amount / compensation would not fall under the afore-quoted provision. Therefore, the provision though quoted in the Execution Application, it is misread by the Tribunal and the impugned order is passed. In the light of the order running foul of the afore-quoted statute, it is rendered untenable.
For the aforesaid reasons, the following: ORDER i. The writ petition is allowed.
- 8 -
WP No. 1067 of 2019
ii. The order dated 21.03.2018, passed in Execution Application No.17/2017, by the Railway Claims Tribunal, Bengaluru, stands quashed.
Sd/- JUDGE
NVJ List No.: 1 Sl No.: 71