COMMISSIONER OF INCOME TAX, (TDS), KANPUR AND ANR. Vs. BHARAT HEAVY ELECTRICALS LIMITED, EPF TRUST, RANIPUR, HARIDWAR.
HIGH COURT OF UTTARAKHAND
Commissioner Of Income Tax, (Tds), Kanpur And Anr.
Bharat Heavy Electricals Limited, Epf Trust, Ranipur, Haridwar.
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Prafulla C. Pant, J. -
(1.) In all these four appeals the Revenue has raised following substantial question of law:-
(i) Whether M/s Bharat Heavy Electricals Limited Employees Provident Fund Trust, Haridwar, is not "individual" as such, was it liable to deduct the tax at source under Section 194A of Income Tax Act, 1961, in respect of the interest accrued/paid to the retired employees on the contributions made by them to the Provident Fund during their service period?
(2.) Word "individual" is not defined in the Income Tax Act, 1961. Section 2 (31) of the Act, defines word 'person' which includes "individual" apart from a Hindu undivided family, a company, a firm, an association of persons or a body of individuals, whether incorporated or not, a local authority, and every artificial juridical person. The explanation to Section 2 (31) of the Act, provides that an association of persons or a body of individuals or a local authority or an artificial juridical person shall be deemed to be a person, whether or not such person or body or authority or juridical person was formed or established or incorporated with the object of deriving income, profits or gains.
(3.) In Commissioner of Income Tax v. Shri Krishna Bandar Trust, (1993) 201 ITR page 989, the Calcutta High Court has held that it is now settled that the word "individual" does not necessarily and invariably always refer to a single natural person. A group of individuals may as well come in for treatment as an individual under the tax laws if the context so requires. The mere fact that the beneficiaries of the trustees, being representative assessees, are more than one, cannot lead to the conclusion that they constitute "an association of persons". The trustees of discretionary trust in the circumstances can be assessed under status of an individual.;
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