Tuesday, August 10, 2021

No Income tax (TDS) shall be deducted on compensaation award fixed by MACT

Motor Vehicles Act, 1988- section 166, 168 and 173. Compensation-Deduction of income- tax-Appellant has not disputed quantum of compensation and liability-Deceased was salaried person also not in dispute-Tribunal itself deducted amount of income-tax from the awarded compensation- Amount awarded by the Tribunal cannot be subjected  to tax on flat rate-Deceased left behind him five legal representatives- Amount has to be distributed amongst all of them and cannot be said that income-tax would be payable-Amount cannot be said  to be income of one year when award was passed-Awarded amount of ?  42,75,000 to carry interest @ 7.5%-Other parts of the judgment maintained as lis is settled between the parties-Appeal partly allowed.  
LMASAWC-32(1)2021

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