HANSAGURI PRAFULCHANDRA LADHANI Vs. ORIENTAL INSURANCE COMPANYLTD

JUDGEMENT

(1.) This application involves interpretation of the provisions of Section 194A(3)(ix) of the INCOME TAX ACT, 1961 regarding deduction at source of the income-tax payable on the interest received by the claimants on the compensation received by them pursuant to the award of the Motor Accident Claims Tribunal.

(2.) This application is filed by the heirs of deceased Prafulchandra Narbheram Ladhani, who had filed Motor Accident Claim Petition before the Motor Accident Claims Tribunal for claiming compensation of Rs.20 lakhs on account of death of Prafulchandra Narbheram Ladhani (hereinafter referred to as "the deceased") on 1.4.1991 in a motor vehicle accident between an Ambassador car in which the deceased was travelling and a public carrier truck. The claim petition was filed by Smt. Hansaguri, widow of the deceased, four daughters (claimant Nos. 2 to 5) and son Naresh (claimant No.6).

(3.) Civil Application No. 10031 of 2006 has been filed by the original claimants for various prayers including the prayer that the amount awarded by the Tribunal as compensation and the interest which has accrued on the said compensation amount be apportioned equally amongst all the claimants i.e. the widow, four daughters and one son of the deceased and thereafter disbursed. It is also submitted that the TDS certificate should be prepared on the basis of the apportionment of the compensation amount and the interest payable thereon to the respective heirs of the deceased and by spreading over such interest amount on year to year basis commencing for the period from 30.9.1991 till 5.7.2006.