Orissa

Sambalpur

EA/1/2016

MD. Feroz Khan - Complainant(s)

Versus

Branch Manager, Bajaj Allianz GIC Ltd. - Opp.Party(s)

19 Sep 2022

ORDER

Order Dated:-19.09.2022      

      After hearing both the sides on 24.08.2022 the following observation made:

1. Perused the order of this Commission dated 13.12.2021. The parties have earlier moved to the Hon’ble State Commission and order dated 07.09.2012 of this Forum/Commission was confirmed on 30.09.2015. The O.P. made the payment on 20.07.2018. This Commission directed the O.P. to pay interest of 9% on the amount Rs. 5,65,961/- from the date of order i.e. 07.09.2012 till its realisation.
2. The O.P./J.Dr. in compliance of the order of this Commission on 18.07.2022 deposited a cheque bearing No. 834215 dated 13.07.2022 for Rs. 4,02,803/- and the D.Hr./Complainant received the amount.
3. The J.Dr. on 08.08.2022 filed an objection to the calculation sheet of D.Hr dated 17.07.2022 and stated that in obedience to order of the Commission dated 13.12.2021 9% interest has been calculated on the amount Rs. 5,65,961/- from the date of order i.e. 07.09.2012 till realisation. The calculation was made from 07.09.2012 to 25.07.2022 for 3608 days which comes to Rs. 5,03,530.71 P and deposited Rs. 4,02,803/- vide cheque No. 834215 dated 13.07.2022 after deducting Rs. 1,00,701/- to-wards tax deduction at source (TDS) as per the provision of S. 194A of the income Tax Act. As the recipient did not submit PAN to the deduction for financial year 2022-23 TDS deducted @20% as per sec. 20AA of the income Tax Act. The interest calculated is always simple interest and not compound interest.

The D.Hr./O.P. on receipt of the cheque amounting to Rs.4,02,802/-objected that the J.Dr. is to receive Rs. 7,57,806/- further compound interest @9% P.A. On Rs. 5,65,961/- every year which will accrued every year. Further Sri. Panigrahi advocate for D.Hr. vehemently opposed the deduction of TDS made by the J.Dr. amounting to Rs. 1,00,701/-.

4. Sri. Panigrahi submitted that interest is a compensation to the D.Hr for the loss sustained. Contract of indemnity, out of  which the interest arose it is not an income and it is not for profit. The deduction made by the J.Dr. is not proper. Custom and conventions are the basis of law and yearly basis the interest need to be calculated in a compound manner.
5. Learned counsel for J.Dr. Sri. B.K.Purohit submitted that the TDS certificate will be provided in September 2022 as the amount has been deducted in July 2022. As per provision of the income Tax Act TDS has been deducted. The deduction is proper. Sri. Purohit further submitted that unless any specific order is not made the interest payable on the amount is always simple interest.
6. The calculation made by the J.Dr. from 07.09.2012 to 25.07.2022 on the amount Rs. 5,65,961/- for 3608 days @ 9% P.A. is proper. The calculation has been made on simple interest basis. The J.Dr. deposited the cheque on 18.07.2022 before the Commission, which is the actual date of realisation and received by the J.Dr. interest for 7 days excess has been given.
7. This Commission has to see whether any order of the Forum/Commission has been properly executed by the J.Dr. or not. TDS is a Statutory requirement of the deductor as per the income Tax Act. This Commission is least concerned about the deduction whether it is an ‘income’ or not. If tax is deducted then the deductor should give proper certificate to the income tax payee for claim.

In the other hand as per order of this Commission dated 13.12.2021 the 9% interest it means 9 % interest P.A. simple interest and it can be interpreted on that way. The J.Dr has already complied the said order.

Accordingly, it is ordered:

6698606.  

The personal bond executed by the J.Dr. dated 18.07.2022 is hereby cancelled. As order of this Forum/Commission complied on 18.07.2022 the execution case is closed on contest.

Order pronounced in open court on this 19^th September 2022.

The parties are at liberty to obtain certified copy of the order.

 

 

 

•