TMI Blog1992 (11) TMI 120X X X X Extracts X X X X X X X X Extracts X X X X ..... visions of section 204(iii) according to which the payer himself is the person responsible for deduction of tax at source under section 194A. In this case the trust, through trustees, was responsible for payment of interest and deduction of tax at source. " 3. The assessee is a trust. The name of the trust is M/s Duggal Family Trust. The said trust is running business in the name and style of M/s Subhash Metal Industries. This trust is comprised of 20 beneficiaries. The shares of the beneficiaries in the trust were claimed to be known and determinate. 4. The Assessing Officer in the course of the proceedings noticed from the records that the assessee has failed to deduct income-tax under section 194A of the IT Act, 1961 (hereinafter cal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee could have been only the " individual ", the assessee was not liable to deduct tax at source, under section 194A of the Act. In view of this, there was no violation of the provisions of section 194A and consequently no interest under section 201(1A) of the Act could be levied on the assessee. 7. Shri G. R. Sofi, ld. D.R. appeared before us. It was contended by Sri Sofi that the assessee was under an obligation to deduct the tax at source. This obligation was not discharged. Before the Assessing Officer, the correct factual position was not stated. Sri Sofi argued that the assessee cannot be construed to be an " individual ". Interest was therefore, correctly charged. It was submitted that the assessee did not file requisite f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed into the seven different categories namely, individual, HUF, company, R.F., A.O.P., local authority and every other artificial juridical person not falling in any of the preceding categories. An " individual " is one entity, one distinct, being a single one. Etymologically the word owe its origin from latin INDIVIDUUS [IN - NOT, DIVIDUS - Divisible]. According to Chambers Twentieth Century Dictionary, it means " not divisible without loss of identity : subsisting as one : pertaining to one only or to each one separately of a group single, separate. . . . . . . . " Section 3 of the Indian Trust Act, 1882 defines trust as an obligation annexed to the ownership of property, and arising out of confidence reposed in and accepted by the owne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of the term can be taken into consideration provided it is precise and clear. Definitions of concepts should be free from ambiguity. While dealing with the concept it is not admissible to substitute metaphors, comparison, etc., for them. We cannot define lion just by saying that the lion is the king of the animal world. Contextual definition makes it possible to clarify the meaning of a word in a given context. 11. Section 194A provides that ANY PERSON, not being an INDIVIDUAL or a HUF, who is RESPONSIBLE for paying to a resident any income by way of interest, shall at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever ..... X X X X Extracts X X X X X X X X Extracts X X X X
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