COMMISSIONER OF INCOME TAX Vs. SIVASAKTHI TRUST

JUDGEMENT

(1.) IN compliance with the directions of this Court in TCP No. 85 of 1997, dt. 14th July, 1997, the Tribunal has stated the case and referred the following questions of law for our opinion : 1. Whether, on the facts and in the circumstances of the case, the Tribunal is right in law in cancelling the interest levied by the AO under S. 201(1A), r/w S. 194A of the IT Act ?

(2.) WHETHER , on the facts and in the circumstances of the case, the Tribunal is right in law in holding that the status of the assessee is not that of an AOP and that there was no failure on the part of the assessee under S. 194A, even though the assessment has been made in the status of AOP ?" 2. The assessment year involved is 1984-85. Though there are two questions, the main issue that arises is whether the provisions of S. 194A of the IT Act, 1961 (hereinafter referred to as 'the Act'), would apply in the case of the assessee. Sec. 194A deals with the deduction of tax source in the case of payment of interest other than the "interest on securities" by any person other than an individual or an HUF, who is responsible for paying the same to a resident. The case of the Revenue is that the assessee was assessed in the status of 'AOP' and, therefore, the provisions of s. 194A are attracted and since the assessee failed to deduct tax at source, it is liable to pay the penalty as provided under S. 201(1A) of the Act.

(3.) AS far as the second question is concerned, the second question is not properly framed and moreover the said question does not arise out of the order of the Tribunal. Hence, that question is not required to be answered and is not answered also. In the circumstances, there will be no order as to costs.