2008 (6) TMI 629

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....g workers etc., for a declaration that petitioners are entitled to receive interest payment from Banks, Treasuries etc. without deduction of income tax at source under Section 194A(1) of the Income Tax Act. 2. I have heard learned counsel appearing for petitioners and learned Standing Counsel appearing for respondents. 3. The claim of the petitioners is that petitioners are entitled to receive payment of interest without deduction of tax at source by virtue of their inclusion under Clause 22 of Notification No.SO 3489 dated 22-10-1970 issued by the Central Government under Section 194A(3)(f) of the Act. Learned standing counsel on the other hand contended that petitioners are not covered under Clause 22 of the Notification above refer....

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....he Board of Trustees constituted under the welfare legislations in these cases can be treated as a statutory corporation referred to in Clause 22 of the Notification above referred. The statutes, under which the Boards of Trustees of the petitioners are created, are essentially welfare legislation for collection of funds from employees and employers for payment to employees at the time of death, retirement etc. The Board of Trustees are constituted only to administer the fund in terms of the statute. Learned counsel for petitioners referred to the provisions of the Act, whereunder Government retains control in the matter of administration of statute, which includes even nomination of trustees. However, I do not think the controls exercised ....