Thursday, May 30, 2024

Delhi High Court refuses to consider plea seeking scrapping of tax on interest of road accident solatium

The Delhi High Court has refused to consider a plea seeking to abolish the provision of tax on the interest of compensation to the person injured in a road accident.

The Division Bench of Justices Manmohan and Sanjeev Narula was hearing a petition filed by Advocate and Social Activist Amit Sahni.

The petition sought to set aside the Central Board of Direct Taxes (CBDT) order dated June 26, 2019, stating that it is appropriate to impose income tax on the interest earned on compensation paid by the Motor Accident Claims Tribunal (MACT). While dismissing the appeal on the issue, the CBDT ordered that the interest received falls in the income category.

Hearing the petition, the High Court praised the petitioner for his research work done regarding the issue. The CBDT opposed the petition saying that the petitioner has no basis to appeal.

The Bench allowed the Petitioner to file a Public Interest Litigation in the matter as the nature of the Petition raised the issue of Public Interest.

Also Read: Delhi High Court seeks Centre’s response on PIL seeking regulation of TechFins of Google, Facebook, Amazon

The number of road accident cases is increasing in the country. However, the Central and state governments are working together in this direction. At the same time, the awareness campaign is being organized by the police administration from time to time. According to reports, road accident cases increase in cold weather. In such a situation, people need to be more vigilant.


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