NATIONAL INSURANCE CO. LTD. Vs. SATYANARAYANA COTTON INDUSTRIES

JUDGEMENT

(1.) The petitioners have filed the CRP challenging the order dtd. 3/7/2013 passed in EP.No.389 of 2007 in OS.No.360 of 1989 on the file of I Additional Senior Civil Judge, Guntur.

(2.) The petitioners have deducted the tax while satisfying the decree. The deduction of tax by the petitioners was challenged by the respondent and the respondent filed EP.No.389 of 2007 under Order XXI Rule 43, 66, 64 of CPC seeking attachment of the schedule properties and to sell the same by conducting auction. The learned Judge allowed the execution petition and directed the J.Dr to pay the balance amount in accordance with the warrant.

(3.) Learned counsel appearing for the petitioners submits that the compensation amount which earned interest because of the delayed payment is liable to be taxed. It is also submitted that Sec. 194-A of the Income Tax Act empowers the petitioners to deduct the tax as the interest component as well.