TDS — Section 195 — Payment of interest to a Non-resident — Payment under a judgment debt — Execution of decree — Retains the character of a judgment debt — Cannot be subjected to deduction of tax in the absence of a provision in the decree.

22. DLF Home Developers Limited v. Anto Thomas

2026 (6) TMI 505 – (Ker):

Date of order 19/05/2026:

S. 195 of ITA 1961

TDS — Section 195 — Payment of interest to a Non-resident — Payment under a judgment debt — Execution of decree — Retains the character of a judgment debt — Cannot be subjected to deduction of tax in the absence of a provision in the decree.

A dispute between the Petitioner and the Respondent was referred to an Arbitrator, and by way of an award dated 16/07/2018, the Arbitrator directed the Petitioner to refund the amount paid by the Respondent along with interest. The arbitration award was challenged in appeal before the High Court, and the High Court dismissed the appeal filed by the Petitioner. The Petitioner further challenged the order of the High Court by way of an SLP, which also came to be dismissed by the Supreme Court.

Subsequently, the Petitioner submitted a calculation statement regarding the balance amount payable. The said amount was computed after deducting TDS. The amount, as per the statement, was deposited. The Respondent raised a dispute regarding the deduction of TDS from the