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TMI Blog2020 (1) TMI 249X X X X Extracts X X X X X X X X Extracts X X X X ..... branch consequent to merger of SBT and SBI, there was a delay in obtaining approval from the Head Office, hence there is a delay in filing the appeal. 3. We have considered the submission and are of the view that there been no negligence or want of diligence on the part of assessee and the reasons for filing the appeal belatedly are found to be reasonable and with sufficient cause. Hence the delay in filing the appeal is condoned. 4. As far as merits of the appeal is concerned, the facts are that the assessee bank paid during the FY 2012-13 a sum of Rs. 60,67,388 being interest on deposit to Karnataka Building & Other Construction Workers Welfare Board. The assessee did not deduct tax at source at the time of making the aforesaid payment. Consequently, an order u/s. 201(1) and 201(1A) was passed by the AO. By the aforesaid order, the assessee was held to be an assessee in default for not deducting tax at source u/s. 194 of the Act. 5. On appeal, the CIT(A) confirmed the order of AO. Hence this appeal before the Tribunal. 6. At the time of hearing, it was brought to our notice by the ld. Counsel for the assessee that the organization to which the assessee paid interest viz., Kar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aid or likely to be credited or paid during the financial year by the person referred to in subsection (1) to the account of, or to, the payee, does not exceed (a) ten thousand rupees, where the payer is a banking company to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution, referred to in section 51 of that Act) ; (b) ten thousand rupees, where the payer is a cooperative society engaged in carrying on the business of banking ; (c) ten thousand rupees, on any deposit with post office under any scheme framed by the Central Government and notified by it in this behalf ; and (d) five thousand rupees in any other case : Provided that in respect of the income credited or paid in respect of-- (a) time deposits with a banking company to which the Banking Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act) ; or (b) time deposits with a co-operative society engaged in carrying on the business of banking; (c) deposits with a public company which is formed and registered in India with the main object of carrying on the business of providing long-term finance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d or paid by the Central Government under any provision of this Act or the Indian Income-tax Act, 1922 (11 of 1922), or the Estate Duty Act, 1953 (34 of 1953), or the Wealth-tax Act, 1957 (27 of 1957), or the Gift-tax Act, 1958 (18 of 1958), or the Super Profits Tax Act, 1963 (14 of 1963), or the Companies (Profits) Surtax Act, 1964 (7 of 1964), or the Interest-tax Act, 1974 (45 of 1974). (ix) to such income credited or paid by way of interest on the compensation amount awarded by the Motor Accidents Claims Tribunal where the amount of such income or, as the case may be, the aggregate of the amounts of such income credited or paid during the financial year does not exceed fifty thousand rupees. (x) to such income which is paid or payable by an infrastructure capital company or infrastructure capital fund or a public sector company or scheduled bank in relation to a zero coupon bond issued on or after the 1st day of June, 2005, by such company or fund or public sector company or scheduled bank ; Explanation - 1. For the purposes of clauses (i), (vii) and (viia), "time deposits" means deposits (excluding recurring deposits) repayable on the expiry of fixed periods. Claim of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roduced by us at para nine above. A close look of this notification show that apart from corporation established by Central or State or Provincial Act, there are two other groups mentioned therein. One is a company in which all the shares are held by the Government or RBI or a Corporation owned by RBI ; and the second is an undertaking or body financed wholly by the Government. Therefore, in our opinion, the terminology used in clause (i) of the notification should be interpreted keeping in mind the tenor and texture of the other clauses. For interpreting what could come within the ambit of clause (i) of the rule "Noscitur A Sociis" can be applied in such a situation. The common genus that runs through all the three clauses is that ownership is vested with the Government either by way of holding the shares or by way of financing. If a company whose shares are held by the government is considered as one falling within sub-clause (f) of clause (iii) of section 194A of the Act, there is no reason why a welfare board constituted in accordance with the Central enactment should be excluded from its ambit. Especially so since funds of the Board was nothing but only cess collected by contr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oyment for an employee who became disabled during his service. It also gave power to the appropriate government to exempt any establishment from the rigors of the said section. The term establishment employed in Section 47 of the said Act was defined in Section 2(k) of that Act. As per this definition, establishment meant a corporation established by or under a central, state or provincial Act or an authority or a body owned or controlled or aided by the government of a local authority or a government company, as defined in Section 617 of the Companies Act, 1956 and included departments of a government. Contention of the respondent was that his employer was incorporated under Companies Act, 1956 and therefore, was a corporation falling with the definition of section 2(k). Question before the Hon'ble Apex Court was therefore whether a company incorporated under the Companies Act could be construed as a corporation falling within Section 47 of the Disability Act. It was in such circumstances the Hon'ble Apex Court distinguished between a corporation established by a Central Act and a corporation established under a Central Act. A company incorporated under the companies Act can never ..... X X X X Extracts X X X X X X X X Extracts X X X X
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