9911796707
TMI Blog2015 (11) TMI 409X X X X Extracts X X X X X X X X Extracts X X X X ..... 08- 09, claiming the following substantial questions of law:- i) Whether the Tribunal erred on facts and in law in dismissing the appeal of the appellant on the ground that the assessee-appellant has failed to prove the loan amount being raised from the State Government and the interest is payable to the Government and as such the issue is covered under Section 196(i) of the Act? ii) Whether the Tribunal was justified in dismissing the appeal of the assessee on the ground that no evidence has been produced on record that the loan amount belongs to the State Government and neither the interest nor the principal has ever been paid by the appellant? 2. A few facts necessary for adjudication of the instant appeal as narrated therein may ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... referred to Annexures A-4 and A-5 to contend that it clearly shows that the interest was paid to the Government as the corpus fund was created by the Government. 4. After hearing learned counsel for the appellant-assessee, we do not find any merit in the appeal. 5. Section 196(i) of the Act reads as under:- "196. Notwithstanding anything contained in the foregoing provisions of this Chapter, no deduction of tax shall be made by any person from any sums payable to- (i) the Government, or (ii) to (iv) XX XX XX where such sum is payable to it by way of interest or dividend in respect of any securities or shares owned by it or in which it has full beneficial interest, or any other income accruing or arising to it." 6. A plain rea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion, i.e. @ 10.30% or 11.33%. The relevant findings recorded by the Tribunal read thus:- "8. We have heard the rival contentions and perused the facts of the case. There is no documentary evidence placed on record by the ld. counsel for the assessee that the loan has been raised from the Government and interest is payable to the Government and therefore, the submission made before the ld. CIT(A) and before us cannot help the assessee to cover the issue u/s 196(i) of the Act. It has also been conceded before the ld. CIT(A) that Punjab Agro Food Grains Corpn. Ltd. has also not declared the said interest income in their books of account and therefore, judicial pronouncement in the case of Hindustan Coca-Cola will not be available to the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /s 201(1) and 201 (1A) of the Act. We find no infirmity in the order of the ld. CIT(A) subject to the rate of interest which the assessee in ground No.3 has agitated should have been 10.30% instead of 11.33%. The AO is directed to verify the rate of interest as per law whether it is 10.30% or 11.33%. Accordingly, the matter is setaside to the file of the AO only to the extent of determination of rate of TDS applicable i.e. @ 10.30% or 11.33%. Hence, ground no.2 of the assessee is dismissed and ground no.3 is set aside to the file of the AO to determine the rate of interest applicable in the light of our direction hereinabove. Ground No.4 is also dismissed in view of our finding and finding of the ld. CIT(A)." 8. Learned counsel for the as ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
