( 1 ) THIS application involves interpretation of the provisions of Section 194a (3) (ix) of the Income-tax Act, 1961 regarding deduction at source of the income-tax payable on the interest received by the claimants on the compensation received by them pursuant to the award of the Motor Accident Claims Tribunal.

( 2 ) THIS application is filed by the heirs of deceased Prafulchandra Narbheram Ladhani, who had filed Motor Accident Claim Petition before the Motor Accident Claims Tribunal for claiming compensation of Rs. 20 lakhs on account of death of Prafulchandra Narbheram Ladhani (hereinafter referred to as "the deceased") on 1. 4. 1991 in a motor vehicle accident between an Ambassador car in which the deceased was travelling and a public carrier truck. The claim petition was filed by Smt. Hansaguri, widow of the deceased, four daughters (claimant Nos. 2 to 5) and son Naresh (claimant No. 6 ). 2. 1 The original claim petition being MAC Petition No. 743 of 1991 was filed on 30. 9. 1991 before the Motor Accident Claims Tribunal at Junagadh. Upon constitution of the Motor Accident Claims Tribunal at Veraval, the said petition was transferred to Veraval in the year 1999 and thereafter upon constitution of the Tribunal at Rajkot, the claim petition was numbered as MAC Petition No. 2240 of 2000. Ultimately the Tribunal at Rajkot allowed the claim petition and made an award for Rs. 11,78,000/- with proportionate costs and with interest at the rate of 9% per annum from the date of filing the petition i. e. 30. 9. 1991 till the date of payment. It was further directed that the amount, if any, paid as interim compensation shall be adjusted against the above liability. So also the amount of deficit court fee stamp, if any, shall be deducted from the said deposit and thereafter claimant Nos. 1 and 6 shall be paid Rs. 3,89,000/- each as principal compensation amount and claimant Nos. 2 to 5 shall be paid Rs. 1,00,000/- each as principal compensation amount. 2. 2 Being aggrieved by the above award, Oriental Insurance Co. Ltd. , insurer of both the vehicles, has filed First Appeal No. 1392 of 2006. This Court admitted the appeal on 4. 5. 2006 and also directed the Tribunal to make investment of the amounts deposited before it. Pursuant to the said direction the Insurance Company has deposited an amount of Rs. 25,27,812/- before the Tribunal by cheque dated 5. 7. 2006. The detailed calculations given by the Insurance Company in the purshis dated 12. 7. 2006 is as under :-

Awarded amount Less NFL Paid Balance Plus 9% interest for 179 months Rs. 15,47,902/- Total Rs. 27,00,902/- Less amount deposited before the Hon ble High Court Rs . 25,000/- Balance Rs. 26,75,902/- . Plus Costs Rs . 22,179/- Total Rs. 26,98,081/- Less TDS deducted & deposited with the Income Tax Department Rs . 1,70,279/- Net Amount remitted Rs. 25,27,802/- Rs. 11,78,000/- . Rs . 25,000/- Rs. 11,53,000/-

( 3 ) CIVIL Application No. 10031 of 2006 has been filed by the original claimants for various prayers including the prayer that the amount awarded by the Tribunal as compensation and the interest which has accrued on the said compensation amount be apportioned equally amongst all the claimants i. e. the widow, four daughters and one son of the deceased and thereafter disbursed. It is also submitted that the TDS certificate should be prepared on the basis of the apportionment of the compensation amount and the interest payable thereon to the respective heirs of the deceased and by spreading over such interest amount on year to year basis commencing for the period from 30. 9. 1991 till 5. 7. 2006.

( 4 ) WHEN this application came up for hearing, the learned advocate for the claimants sought leave to join the Commissioner of Income-tax. At the last hearing on 20. 9. 2006, we had directed the Insurance Company to furnish the details of the amounts of interest payable to each claimant after giving the spread over of interest for the period from 30. 9. 1991 to 5. 7.