ORDER

E.A. No. 122 of 2019 in C.C. No. 2123 of 2016

1.  We have heard the learned counsel for the decree holder and the judgment debtors, and have perused the record.

2.  The Award made vide the Order dated 11.06.2018 of this Commission in C.C. No. 2123 of 2016 Rita Bakshi vs.M3M India Limited & ors., which has attained finality within the meaning of Section 24 of the Act 1986, is reproduced as under:

11. For the reasons stated hereinabove, the complaint is disposed of with the following directions:

(i)    The OP i.e. M3M India Limited shall refund the entire principal amount of Rs. 2,74,79,831.48p, to the complainant alongwith compensation in the form of simple interest @11% per annum from the date of each payment till the date of refund.

(ii)   The OP i.e. M3M India Limited shall pay a sum of Rs. 25,000/- as the cost of litigation to the complainant.

(iii)  The payment in terms of this order shall be made within three months from today.

3.  It is admitted to by both sides that the entire amount paid by the decree holder to the judgment debtors i.e. the deposited amount of Rs. 2,74,79,831.48p. has been refunded. The “compensation in the form of simple interest” at the rate of 11% per annum from the respective dates of deposit till the date of realisation has also been paid. The cost of litigation of Rs. 25,000/- has been paid as well.

4.  The short point outstanding is apropos the tax deducted at source (TDS) by the judgment debtors in respect of the “compensation in the form of simple interest”. Accordingly the issue for consideration is whether or not compensation, which in the instant case was computed by way of interest on the deposited amount, attracts TDS.

5.  Learned counsel for the decree holder submits that The Income Tax Act, 1961 under which TDS is deducted and The Consumer Protection Act, 1986 under which compensation is awarded have to be read together in conjunction. He places reliance on germane provisions of the Income Tax Act and of the Consumer Protection Act, relevant extracts of which are reproduced below for reference:

Section 56(2)(viii) of The Income Tax Act, 1961:

56(2)(viii): Income from other sources.- - -   - - - the following incomes shall be chargeable to income-tax - - - Income by way of interest received on compensation or on enhanced compensation - - -.

Section 194A of The Income Tax Act, 1961:

194A.  Interest other than "Interest on securities"-. (1)  Any person, not being an individual or a Hindu undivided family, who. is responsible for paying to a resident any income by way of interest other than income [by way of interest on securities], shall at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct income-tax thereon at the rates in force:- - -

Section 14(1)(c) & (d) of The Consumer Protection Act, 1986:

14. Finding of the District Forum.— (1) If, after the proceeding conducted under section 13, the District Forum is satisfied that the goods complained against suffer from any of the defects specified in the complaint or that any of the allegations contained in the complaint about the services are proved, it shall issue an order to the opposite party directing him to [do] one or more of the following things, namely:— - - -

(c) to return to the complainant the price, or, as the case may be, the charges paid by the complainant;

(d) to pay such amount as may be awarded by it as compensation to the consumer for any loss or injury suffered by the consumer due to the negligence of the opposite party: - - -

Learned counsel submits that the award made under the Consumer Protection Act contained two parts, one, refund of the deposited amount and, two, payment of compensation on the deposited amount, which was computed “in the form of simple interest” on the deposited amount. Section 14(1)(c) of the Consumer Protection Act of 1986 provides for “return to the complainant” the “price” o