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2005 (1) TMI 598 - ITAT BANGALORELevy of interest - failure to deduct tax as required u/s 195 - Payments made to several USA based companies - public charitable trust - HELD THAT:- The assessee cannot be considered as a public sector undertaking also as the public sector undertakings are set up for commercial consideration and not for charitable objectives, the beneficiaries of which are public at large. The status of assessee as charitable trust itself goes against the principle to hold it as a public sector undertaking or a Government Department as Government of India is not beneficially interested in the assessee trust. It is only monitoring the activities of the assessee trust so that the major objectives of Government to grant benefits to units registered with STPI are properly monitored. We accordingly hold that the assessee is not a Government Department or a public sector undertaking so as to obtain necessary approval from the Committee on Disputes. In view of the submissions by both the counsels and in the absence of any contrary decisions, respectfully following the order of ITAT, in the case of Wipro Ltd. v. ITO [2003 (4) TMI 223 - ITAT BANGALORE-C] to which one of us (AM) is a signatory, we hold that the assessee was not required to deduct tax u/s 195 in respect of payments made to various USA based companies mentioned above. Accordingly, we hold that the assessee is not required to be treated as an assessee in default u/s 201(1) of the Act. Since the assessee is not treated as an assessee in default u/s 201(1) of the Act, no interest is also chargeable u/s 201(1A) of the Act. In the result, all the appeals are allowed.
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