The Commissioner Of Income Tax vs The United Insurance Co Ltd on 21 October, 2008

Karnataka High Court
The Commissioner Of Income Tax vs The United Insurance Co Ltd on 21 October, 2008
Author: K.Sreedhar Rao C.R.Kumaraswamy
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1

H'? THE HIGH E2fi?'§F..'I' QB' E§.%KE*i'.F:!K'fiF.fi; E«P:NE.?'1I.fiB.fi
i"}.3'4§.MEE3 TE-{ES TEE Elm': DRY SE' QIQTOEER, 3993

¥'E.E 3EH"£'

wag mmm*BE MR. JUSTICE H.sREEnHAR é§m;; 'R

mm

€33 HQm*BLE MR" JfiST1CE a.i;3fim§3As$3a$'~""

I?& We 319 mg zfioé
Bsrmamw '- M

1 was flflfifllfifiififlfifl fit :$c@mfiV$a$>_
m R BUILDING T *-*s .'-=V'

   

{K3

WEE zmwfififl E@Q§k1FFX§ER {TBS}
W&Rfl 16w3- V _' '.¥

5 aQEU:L§£w3"'
@fiflEfi5,RQflfi"«NM. .....

. APEELISQWS

'1p*'gEy73;i : M V saafiamaaa ~a5v.;

"* THE §%§TED xmsuaamcs $9., LTE.,

Eiviflfflwfii QFFEGE~l

"« F;B;§m.27&3
»_ _&m£1 mmasxmw Raga
*»_ EANQQLQRE 356 max

... EEESFQIWENT
'mm ETA :3 filed u:'$.26iI"§-A mf I.'E'.A.1'?25fEzN{§s'2%3G5, for the

<:é////W



fimamfimmant Egan 2088-2661, ytayi that this
Han'bia fiauxt may hm plgaaad ta:

ii fiwrmaiata thg aubatantial questiflna mf law
fitatafl tharain, ii} allww the appeai and Eat

asida the cxdar gagged by the ITAT EangalQrgW_
in IE&.mm.l?25fBNQ/Efififi, dated &.$.2GGTcQgfihfig~.
the urdexa af the Eypallate 59mmisaiQn§r"afidf# "

Enmmma Tax Officax, fiTD3};Wardf16£33M
Baagalara. *"~W% 'V4

Thia apgeal caming on f0:~héér§n§"th13'g 
fiay, K snsnxaa nan; VJ.,' daliverad%.th3\,'

fmilmwimg:

The zwapomdanfi a_§§fi§fixgn§§_ Céfigfinyy,

wuxauamt ta £h$ §ka£d mafiejunda£ the M.V. act

has ymid Qdmp§ms$§iQfia£& the victim afi fiotar

vahiw1£"Ecmifi@n§Q The awazfi amwunt comaistad

 _af't%é a®§%m$atimn anfi intarast liability.

 '1"'1':'é{'j_:3:..*.%:z§<;:v"s;*3'..aj.z:a2':.$ car sac. 19£§zfF1.;:{3}€ix}

"._4m§mfiafi5Ht3 that Whfifl tha remgondant pays

"«;$fifi@fié5fi liahility mfira thfifl %s.5U,QGQf*¥ it

 *, $h®ald afidflfit T85 hm am extent mi 10.3% Qf

"a »7tm@ intaraat u¢myanent* In dafault, the

xamymmdent bacmmaa liable ta gay the said
ammmmh tn the rsvenue ufa 2&1 mf the I.T. Act

with infiaxeat amfi yaaalty.

Q?



 

1&1

$3., The xewpranfimmi: failad ta deduct 

raimiiz the TBS a.mm.:.:m'; tm the zavanue. 

iasumfi m:v1.:.i.em ta than mE=:=pm:::»:3;ez1t, afits,t_V'_7sngq'Li_i;ff'

fmn.-uni that tha reapmnxient  

msanfiatsa aafi Sea. lauiiajz . _.Hana9*,, :.1i1:et,'§':.+a§;i" "t:h£: "

mmawpazzy ta». tiapcaait th9"V"y:fi'£§S  
in'te:z::aat an tbs T165  V' A V

4. The :::'.z.*;:,  the
cmziar azsf they 'li';h&:; «§'5i§?'-éi'ExQ$at",.¥_..T.fT':£::ibunal in

ay}geaE at étiaév $i§;.s.t4&_*ii'a§é' 'iihe renatpcmdant

partiy  3._«:t»§-»."%é'v;."€_--    The dixeution ta

gag; intm:'u*.=.aV_35'?1':._ "tizfié is 391': aaide, the

reg': ;s;2s*.{:"_ i'.:E..*V122.AA '«':'3"t:it:'é:1': 15 canfirmed. The

"'_z~é-'~a§:§i?y'£e;£¥§:  gaxmglttmzi undaz: the mcdm: ta

aTp:%,::;:::-_  mm: tha intezeat liability

 far ev~=e:;.a:21V_v«;:.;::' F'tha aaaaasmarzt year. T3119 revenue

"* :}' A"--¢:£g*a§Ar;i.mv*.éd$1' by the mrdex am tha Tribunal in

°ri}&3;*_g':Lr:.é;: étlze interest haa filed the appeal. The

:rr; its

intearéefit .. (1%?



mmurt in Mittai Stag} Ltd. Vs. CIT, 2&9 ITR

?Q?.

?. Tn the Mittml Steel mafia, tha pra?i$§ E@5; x

Sam. 2%} was ands: cQm3idezati9n. ,T$§ a%id

pmavifim am@mwar5 lqvy mi y9fi§ltf'§fi_Efi§ T3$ _1

dadumtian ia amt affieated £Qr= any .fiaiiQ 3

xfiaawmu Hwwvar, aac. Efilflé} 13 an fiiatgnct
ynmvifiian ta lav? "aintarfist , far deiayed
rwmittanma. it im in fiheifirfimfiiééjwf revenua
that far haiatafi' §aymaht"_fif= tax flax any
xaaammabifi: dada&; th§*¢a5a&aaee ia liahla tfi

gay imtéraSt '»fit@*fihé"" rate af' 12% p.a.

Similagiyg f¢f"£@fufidag xevemne pays intareat

* t&".tfia Vfifiéesaae. Tharetara, the levy at

ifltexmatf mfg %3§l£1&3 mammmt at any rate be

"  cana€ru%fl" $£A a. ganalty. In that visw, the

" Q"afintr% fihdig mf the txifiunal is set aaida.

"?h£"Qm%ati®n5 mi law ara amawaxad in favmur 0f

'"tme revenue.

$. It ia ygrtinent ta meta that most mf
tha Wfimtima in the Matar Vahicla aacident whm

gat cmmpenaatiwn belmmg Em pmwret atrata af



tha amaiaty. ?hay* may' mat incur any tax

liahifiztym ?hfi tribunai hflfi rightiy rfliractgfi

that the intareat paid abcmsa 3E£5.fiD,,Q{}Q,i- 

be apiit and apxeafl wvex tha periad f:%fi th§f*

5.7.1

. . ” I

rfiata :;.n’%,::.-:a;r»a:a’I:: is sziirectmfi zm 1:;gpa.:’.¢«:;”‘1:v.~.:;:{Lj’f.;.,”‘

tag

paymamt. If aha apreafl Qvaxiwifi givém “im’%T

majmzi%y’ mf caaea; the xgagundént *$a§vw§gt
influx liability ta yay any TES., In the efiant,
tha rmaywndemt t$m1taT§EE am¢fint as dixemted

My Khfi Txibunalg thawx£v$mu§’ia’fi;faetwfi to

hmifi was $mfit@ §fiqu$@E_hy isauing nmtice to
tha §ar$&m5.wflm’h&Vé.£w¢givaa eampansatiun ta

find mat Eheir fix lfifibility an the intaraat

_raa%iW@d;~Ef i%_iB founfi that there is a tax

K liahi§ity:0n_t&fiv§éks%n csncerned, the ravenua

‘ahafihg ,dmmL§:t tha tax tram tha peraam
,;=’:::»_;w’e-5.5: 1:”n3;é;– ” .1:’afund t1:s.sr.-2 emwmxt t 0 the
$ea3mmdaatQx’$@ alamfi if thexe is na tax

_liabii1t§”-Eh tug ;p@r$@m. &fincaxned, the TES

y,@mll%mfi¢fi3 afiwuld ha xefundad ts the
V’;Qapm$flant, mf mmmrsa with intareat in Either

with tha abmrva czxbaarvaticana, the appeal

3. a a3; lawevfi ..

Sax.

— ………. …. W” WW 7 .

@3225 ‘V

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