TMI Blog2007 (11) TMI 335X X X X Extracts X X X X X X X X Extracts X X X X ..... represented the Revenue. 3. At the outset the learned counsel for the assessee clarified the preliminary issue relating to approval of COD. He submitted that in view of the decision in the case of Andhra Pradesh Power Generation Corpn. Ltd. vs. Asstt. CIT Anr. (2006) 202 CTR (AP) 62 : (2006) 280 ITR 388 (AP), and in view of the decision in the case of CIT vs. Combustion Engineering Inc. (USA) (2007) 295 ITR 70 (Mad), the clearance from the committee constituted under the direction of Hon'ble Supreme Court is required only when the dispute is in between the Ministries of Government of India or Ministry and public sector undertakings. According to him, the assessee trust is not a public sector undertaking and therefore the approval of CO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provisions of s. 194A have been applied wrongly by the AO by following the order of the Tribunal Delhi Bench "A" in the case of ONGC Ltd. vs. ITO (2005) 98 TTJ (Del) 1111 : (2005) 4 SOT 333 (Del) and held that the assessee was liable to deduct tax at source under s. 194A in respect of credits made to accounts of members of the trust who have ceased to be the employees of the NTPC Ltd. and thereby the assessee was treated as an assessee in default under s. 201(1) and 201(1A) of the IT Act. 8. It was submitted by the learned counsel for the assessee that in the above appeal filed before Tribunal, the plea of status was not raised before the Tribunal and therefore the decision of the Tribunal in that case is distinguishable. 9. Coming to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion at source." 10. For supporting his argument that the trust is to be treated as individual because the trust is represented on behalf of the employees and trustees being individual, provision contained under s. 194A of the IT Act will not be attracted, the learned counsel placed reliance on the decisions in the cases of ITO vs. Arihant Trust Ors (1995) 127 CTR (Mad) 448 : (1995) 214 ITR 306 (Mad); Ganesh Chhababhai Vaalabhai Patel family Trust vs. ITO (1994) 51 ITD 544 (Ahd); Asstt. CIT vs. Guru Trust (1996) 56 TTJ (Bang) 73 : (1996) 52 ITD 247 (Bang); Lalchand Tikamdas Makhija Anr. vs. J.K. Kuriyan, CIT Ors. (1991) 188 ITR 253 (Bom); CIT vs. T.S.K. Enterprises (2005) 274 ITR 41 (Mad). Copies of these decisions have also been fil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ganesh Chhababhai Vaalabhai Patel Family Trust, the Ahmedabad Bench of the Tribunal while dealing with the applicability of s. 194A has made the following observations: "Liability to deduct income tax would arise in cases where person paying income by way of interest is not an individual or HUF. If he comes in the category of 'individual' or 'HUF', there would be no liability under the said provision. In the present case the trustees represent individuals and HUFs. They do not represent AOP or BOI. Consequently, they would be assessable in the status of 'individual' or 'HUF' and such assessment would be in the like manner and to the same extent as the beneficiary. Beneficiaries have been assessed in respect of income of the trust in the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eficiary Trust (1990) 87 CTR (Bom) 71 : (1991) 188 ITR 224 (Bom) has also taken similar view. We are not required to multiply the authorities because the status of the trust has been well defined in the abovementioned authorities against which the learned Departmental Representative could not bring to our notice any decision to counter the argument of the learned counsel for the assessee. 11.5 The assessee had taken specific plea before the learned CIT(A) but the learned CIT(A) has wrongly distinguished the decision in the case of M.L. Family Trust and the decision in the case of ITO vs. Arhant Trust Ors. He has not assigned any cogent reasons to do so and has simply stated that these decisions related to prosecution proceedings. In our ..... X X X X Extracts X X X X X X X X Extracts X X X X
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