larger bench of Justice Vineet Kothari and Justice Ms.Anita Sumanth, admitted WP No.7693/2020 filed by an injured victim S. Sridhar. The injured claimant submitted that he had made a claim for Rs.30 lakhs for grievous injuries sustained by him a motor accident.
On noting that in another injury claim Justice Anand Venkatesh had referred to a larger bench the said issue, the claimant had filed this writ petition. It was noticed that there was an apparent conflict between the decisions in Mani (2005) and Chinnadurai (2016)and hence it had to be resolved by a larger bench.
Accepting the case of the injured claimant S.Sridhar, the larger bench has recorded that TDS issue on interest liability in motor accidents claims, was an important issue needing early resolution. The division bench suo motu impleaded Central Board of Direct Taxes as party for proper adjudication. The High Court has directed the Central Government who took notice through Additional Solicitor General and CBDT to file their counters in 4 weeks. TN Legal Services Authority, representing the interest of community of victims also took notice through a counsel.
The appeal already referred to the larger bench by learned Chief Justice was tagged on to the writ petition. Specific questions on applicability of TDS on interest liability in compensation claims for motor accidents victims, were framed for determination by the larger bench. The proceedings stand adjourned to 22nd June, 2020 for final hearing.
Interestingly, CBDT was orally directed by the High Court to compile all records relating to the element of TDS in interest liability in motor accidents claims – the TDS collected since 1/6/2003- date of introduction of the provision- refunds claimed for, unrefunded amounts lying with the IT Department, and indicate the law relating to refund of such TDS and use and utilisation of the unrefunded TDS in such cases. It may therefore have become necessary for CBDT/IT Department to, in turn seek the information/data/details from all insurance companies and transport corporations in Tamil Nadu- on the TDS applied by them on the payments made with details of the entities.
All in all, the push that Justice Anand Venkatesh thoughtfully gave to this issue. has been eminently worthwhile. There is reason to believe that the division bench may finally settle the vexed issue of Tax Deduction at Source- TDS- on interest liability in excess of Rs.50,000/- in motor accidents claims. There is dire need for clarity in TN on whether to apply TDS or not, in view of two apparently conflicting judgments. The issue which is 17 years old and in view of differing verdicts on this in various High Courts, Tamil Nadu may at long last get clarity. Ultimately, of course, the TDS issue may have to be escalated to Supreme Court for a consistent and uniform application Pan India.
And to think that in these Pandemic times, a Judge thought it fit to refer to a larger bench, Chief Justice of Madras High Court made the reference as if on rebound in a week, and two judges of the division bench, have framed the questions for resolution, in just one day, is commendable. Extraordinary times may need extraordinary efforts. The litigant public deserve the same. Incidentally, the learned single judge had already made it clear while ordering reference to a larger bench, that orders in all Execution Petitions vis a vis TDS issue shall be subject to result of the proceedings before the larger bench.The interest of all stakeholders stand protected. Now read the order. You may agree.
[5/21, 17:21] Sekarreporter 1: ЁЯНБ
