TMI Blog1991 (6) TMI 88X X X X Extracts X X X X X X X X Extracts X X X X ..... . Anita w/o Ashokkumar 14 % 8. Rajeshkumar Dalipchand 7 % 9. Krishorchand F. Trust 15 % It would be seen from the above table that eight beneficiaries are either individuals or HUFs and share of each of those beneficiaries was determinate. The total share of these eight beneficiaries come to 85 per cent. The balance 15 per cent share is in favour of Kishorechand Family Trust which is a discretionary trust. 15 per cent of the income came to Rs. 39,555. On this the ITO charged tax at maximum marginal rate. The assessee filed appeal before the CIT(A) who allowed the same. The Department is now in appeal before the Tribunal. 2. The submission of the learned counsel for the assessee is that Kishorechand F ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s said to have been created. We accordingly, restore the matter to the ITO with direction that he would give opportunity to the assessee to produce the will by which Kishorechand Family Trust is said to have been created. The ITO would examine the will and then decide the point in controversy in accordance with law after giving reasonable opportunity of being heard to the assessee. We do not express any opinion one way or the other on the point in controversy in this order. ITA No. 2409/Ahd/1987; Asst. yr. 1984-85 4. The assessee (K.C. Trust Ahmedabad) had paid interest to various parties. Out of this interest Rs. 1,28,606 had been paid to 25 parties and in case of each of these parties the amount exceeded Rs. 1,000 and the assessee d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... individual" or "HUF" and as such the assessee trust was under legal obligation to deduct tax at source and since admittedly the assessee trust had not deducted tax at source, the assessee trust was assessee in default in respect of the tax with the result that interest under s. 210(1A) was leviable. The submission on behalf of the assessee, on the other hand, was that the assessee trust was a specific trust and that the status that would be applicable to the assessee trust was the status of the beneficiaries and that out of nine beneficiaries eight beneficiaries were individuals of HUFs and only one beneficiary was a discretionary trust. In these circumstances, according to the learned counsel for the assessee, tax was not deductible at sou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the entities represented by the trustees was a discretionary trust, the provisions of s. 194A would be applicable because in such a case it could not be said that the trustees represented individuals and HUFs only. Consequently, in present case, the assessee trust was under legal obligation to deduct tax at source on the interest paid by the assessee trust under the provisions of s. 194A of the Act. The fact that the beneficiaries of the assessee trust have been assessed separately in respect of the income receivable by them from the trust would be irrelevant as far as the question whether the assessee trust was under legal obligation to deduct tax at source under s. 194A was concerned. Admittedly, the assessee trust had not made the said d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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