ORDER : 1. Present petition has been filed against direction passed by the Motor Accident Claims Tribunal-IV, Shimla on 20.06.2018, in Exe.(MACT) No. 18-S/10 of 2016, titled as Prabha Vati and others vs. Madan Lal and others, filed by claimants for payment of balance amount of Rs.45,804/- which was not paid by the petitioner/Insurance Company to the claimants/respondents but were deducted as TDS for income tax on interest payable to the claimants/respondents on compensation awarded in their favour as Motor Accident Claim and deposited with respondent No. 7, The Commissioner (TDS), Sector-2, Panchkula. 2. In execution petition preferred by the claimants/respondents for payment of balance amount of compensation, the Motor Accident Claims Tribunal, vide impugned order, has directed petitioner/Insurance Company to deposit the balance amount of Rs.45,804/- within 45 days from the date of order, failing which warrant of attachment of movable and immovable property of petitioner has been ordered to be issued. 3. Section 194-A of Income Tax Act, 1961, clearly provides that any person, not being an individual or a Hindu undivided family, responsible for paying to a ‘resident’ any income by way of interest, other than income by way of interest on securities, shall deduct income tax on such income at the time of payment thereof in cash or by issue of cheque or by any other mode. Compensation awarded under Motor Vehicle Act cannot be said to be taxable income. Compensation is awarded in lieu of death of a person or bodily injury suffered in a vehicular accident, which is damage and not income. 4. It is well settled that interest awarded by the Motor Accident Claims Tribunal on a compensation is also a part of compensation upon which income tax is not chargeable as also held by the Division Bench of this Court in Court on its own motion vs. The H.P. State Cooperative Bank Ltd. and others reported in 2014 (Suppl.) Him.L.R. (DB) 2575 and reiterated in CWP No. 460 of 2014 titled Shiv Ram Sharma vs. Union of India and others and other connected matters vide decision dated 3.6.2015. 5. Therefore, in view of above said decision, deduction of income tax by petitioner/Insurance Company on the interest accrued/awarded on the compensation deposited by the petitioner/Insurance Company is illegal and is contrary to the law of land. 6. 5. Therefore, in view of above said decision, deduction of income tax by petitioner/Insurance Company on the interest accrued/awarded on the compensation deposited by the petitioner/Insurance Company is illegal and is contrary to the law of land. 6. In view of above discussion, this petition is disposed of directing respondent No. 7 Income Tax Officer, (TDS), Sector 2, Panchkula, Haryana to refund the TDS to the petitioner/Insurance Company within eight weeks from date of receiving information thereof, which shall be supplied by petitioner/Insurance Company within two weeks from today, as per Rules applicable and petitioner company is also directed to make payment of balance amount of compensation along with interest, if any received by it from the Income Tax Department to the claimants/respondents, within two weeks from the date of receipt of refund, failing which petitioner company shall also be liable to pay interest @ 9% per annum on the said amount with effect from 20.6.2018 till payment/deposit. Interim order dated 25.09.2018 passed in CMP No. 9331 of 2018 also stands vacated in above terms. The Motor Accident Claims Tribunal-IV, Shimla H.P. is directed to proceed further accordingly. Petition is disposed of in the aforesaid terms, so also pending application(s), if any. No order as to costs. The petitioner is permitted to produce copy of order downloaded from the High Court website and the concerned authorities shall not insist for certified copy of the order, however, they may verify the order from the High Court website or otherwise.