LASIBEN KALABHAI JHALA Vs. BABUBHAI CHHAGANBHAIMISTRY

JUDGEMENT

(1.) BY way of this petition under Article 226 of the Constitution of India the petitioners ­ original claimants have prayed for the following reliefs:

(2.) WE have heard Shri Nirav Thakkar, learned advocate appearing on behalf of the petitioners ­ original claimants and Shri Daxesh Thakkar, learned advocate appearing on behalf of the respondent insurance company. We have also gone through the decision of the Division Bench rendered in Civil Application No.10031/2006 in First Appeal No.1392/2006 [Annexure C to the petition]. By the aforesaid order the Division Bench of this Court has specifically held that the income tax liability of the concerned claimants to pay tax on the interest accrued on the compensation awarded to them shall arise if such interest income accrued in the concerned financial year together with other income of the respective claimants in that financial year exceeds the chargeable limit as specified in the provisions of the Incometax Act, 1961 in force for the relevant years. By observing and holding so the Division Bench has thereafter observed that it will, therefore, be open to the claimants to make appropriate applications/representations before the concerned incometax authority for refund of such amount/s as may be due to them out of the amount of interest on compensation which has been already deducted by the insurance company as tax deducted at source under the provisions of section 194A of the Income Tax Act, 1961. While disposing of the aforesaid civil application, the Division Bench issued the following directions.