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TMI Blog2008 (7) TMI 398X X X X Extracts X X X X X X X X Extracts X X X X ..... ed, and, secondly, since status of assessee was that of an individual, the provisions of section 194A could not be applicable to the respondent-assessee. – Held that assessee cannot be treated as defaulter u/s 194A - 781, 782, 783 and 808 of 2008 - - - Dated:- 28-7-2008 - BADAR DURREZ AHMED and RAJIV SHAKDHER JJ. Ms. Rashmi Chopra for the appellant. Kamal Sawhney for the respondent. JUDGMENT The judgment of the court was delivered by BADAR DURREZ ARMED J.— These four appeals arise out of the common order dated September 14, 2007, passed by the Income-tax Appellate Tribunal (hereinafter referred to in short as the Tribunal ) in I. T. A. Nos. 4042 4043, 4044, 4045/D/2006 pertaining to the financial years 2001-02 to 2004-0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Assessing Officer. The matter was taken in appeal by the assessee before the Tribunal. Before the Tribunal, the issue that required consideration was, whether the assessee-trust was an individual and, therefore, was outside the purview of section 194A of the said Act. The Tribunal considered the definition of person given in section 2(31) as well as the provisions of section 194A of the said Act and came to the conclusion that a conjoint reading of the two sections would make it clear that before holding an assessee in default under section 194A, it has to be first determined and adjudicated as to what is the status of the assessee. This is so because any person who is an individual or a Hindu undivided family is not liable to deduct ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 161 of the said Act. We are of the view that the objects for which the trust was constituted by the trust deed dated April 28, 1968, needs to be kept in mind. A perusal of the objects, the relevant extract of which is referred to hereinafter, would show that the aggregate of sums, which are contributed or subscribed to the fund by the members as defined in the Regulations and by the Corporation in accordance with the Food Corporation of India (Contributory Provident Fund) Regulations, 1967, together with the income which accrues on investment held by the trustees, constitute assets of the fund which the trustees are required to hold and apply in accordance with the regulations which are binding on the members to the hind. The relevan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ect conclusion, firstly, that before it could be determined as to whether the respondent-assessee was required to deduct tax at source under section 194A of the Act, its status had to be determined, and, secondly, if its status was that of an individual then, the provisions of section 194A of the Act could not be applicable to the respondent-assessee. 9. In the instant case, the Tribunal came to the conclusion that the respondent-assessee had the status of an individual and• it was, thus, axiomatic that it Was not required to deduct tax at source in respect of the payments made by it in view of the provisions of section 194A of the Act. 10. The impugned order does not call for any interference. We find that no substantial question o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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