Himachal Pradesh High Court
Rajan Kumar & Ors vs Income Tax Officer & Anr on 24 October, 2024
Author: Tarlok Singh Chauhan
Bench: Tarlok Singh Chauhan
( 2024:HHC:10186 )
IN THE HIGH COURT OF HIMACHAL PRADESH SHIMLA
CWP No. 3511 of 2024.
Date of Decision : 24th October, 2024.
Rajan Kumar & Ors. ...Petitioners.
Versus
Income Tax Officer & Anr. ....Respondents.
Coram:
The Hon'ble Mr. Justice Tarlok Singh Chauhan, Acting Chief Justice.
The Hon'ble Mr. Justice Satyen Vaidya, Judge.
Whether approved for reporting? No.
For the Petitioner(s): Mr. Rajiv Rai, Advocate.
For the respondents: Mr. Neeraj Sharma, Advocate and Mr.
Ishan Kashyap, Advocate, for respondent
No.1.
Mr. Lalit Kumar Sharma, Advocate, for
respondent No.2.
Tarlok Singh Chauhan, Acting Chief Justice.
The instant petition has been filed for grant of following
substantive reliefs:-
"A. That the impugned act and conduct of respondent No.2
of deducting the TDS from award amount vide order dated
28.08.2010 passed by learned Commissioner under
Workmen Compensation Act, 1923 vide Annexure P/1 may
kindly be declared illegal.
B. That the respondents may kindly be directed to return
the amount of Rs.48,069/- (Rupees Forty Eight Thousand
and Sixty Nine only) so deducted from the award amount
vide order dated 28.08.2010 along with interest at the rate
...2... ( 2024:HHC:10186 )
of 12% per annum."
2. It is by now well settled that the interest awarded on the
compensation amount either by the Motor Accident Claims Tribunal
or by the Commissioner, Employees Workmen Compensation under
the Motor Vehicles Act or Employees' Compensation Act or any
other Act is also the part of the compensation upon which income tax
is not leviable/chargebale. This has been so held by the Hon'ble
Division Bench of this Court in CWPIL No. 9 of 2014, titled as
Court on its own Motion vs. The H.P. State Cooperative Bank Ltd.
and others. The interpretation of the law has been reiterated in
CWP No. 460 of 2014, titled as Shiv Ram Sharma vs. Union of
India and others and other connected matters vide judgment dated
03.06.2015 and lastly by the learned Single Judge of this Court in
CMPMO No. 166 of 2018, titled as National Insurance Company
Limited vs. Dil Kumari and others, decided on 01.06.2018.
3. In view of the aforesaid settled proposition of law, we find
merit in the instant petition and the same is allowed. Accordingly,
respondent No.2 is directed to refund the TDS amounting to Rs.48,069/-
(Rs.Forty eight thousand and sixty nine only) which has been deducted
...3... ( 2024:HHC:10186 )
by it from the compensation amount awarded in favour of the petitioners
vide order dated 28.08.2010 passed by the learned Commissioner under
the Workmen Compensation Act along with 12% interest from the date
of deduction till the payment thereof to the petitioners.
(Tarlok Singh Chauhan)
Acting Chief Justice.
(Satyen Vaidya)
Judge
24th October, 2024.
(jai)
