TMI Blog2019 (10) TMI 42X X X X Extracts X X X X X X X X Extracts X X X X ..... g established under a Central or State Act or a company or a co-operative society, or club or firm or other association of person, whether incorporated or not. In the modern sense of the term, departed from it's origin, it is difficult to treat universities such as the assessee as a corporation or undertaking, especially in the context of the aforesaid taxing notification, that apparently seeks to identify different categories of persons, made liable to deduct tax at source. Used in that sense, the words corporation and undertaking clearly refer to status of the person as a corporation or an undertaking only, while university is primarily seen and understood as an educational institution and not a corporation or undertaking. Being ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. Undisputedly, facts of the case are that the assessee is a university established under the Uttar Pradesh Evam Prodyogik Vishwavidalaya Adhiniyam 2000 (U.P. Act No.19 of 2000). During the assessment years in question, the assessee awarded contracts, for construction of college and residence for staff etc., to three contractors. It made payments to them without making any deduction of tax at source. This became subject matter of penalty proceedings under Section 8-D (6) of the Act. According to the assessing officer, the assessee was obliged to make deduction of tax at source under Section 8-D (6) of the Act. Since entire payments were made without necessary deductions, the assessee was visited with penalty orders for t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) any company; or (e) any co-operative society or other society club, firm or other association of persons, whether incorporated or not. 7. Clearly, the applicability of Section 8-D (1) and therefore, requirement to make deduction of tax at source, had been created specifically with respect to payments made under contracts awarded by specified persons, namely, the Central Government, State Government, local authorities, a corporation or undertaking established under a Central or State Act or a company or a co-operative society, or club or firm or other association of person, whether incorporated or not. 8. In the first place, a university established under a separate enactment w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pecie apart from normal or usual corporate entities. It derives its identity and character, different and distinct from statutory corporations by it's activities, privileges and academic content. Halsbury's Laws of England (4th Edition) describes 'Universities' as: Para 256. General. A university is the whole body of teachers and scholars engaged, at a particular place, in giving and receiving instruction in the higher branches of learning; such persons associated together as a society or corporate body, with definite organization and acknowledged powers and privileges (especially that of conferring degrees), and forming an institution for the promotion of education in the higher or more important branches ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provisions. A copy of any application for a charter for the foundation of any college or university which is referred by the Queen in Council for the report of a committee of the Privy Council must be laid before Parliament, together with a copy of the draft charter, for not less than 30 days before the committee reports upon it. The functions of the Secretary of State for Education and Science, in relation to universities in Wales, have not been transferred to the Secretary of State for Wales. 11. Thus, in the modern sense of the term, departed from it's origin, it is difficult to treat universities such as the assessee as a corporation or undertaking, especially in the context o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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