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2016 (7) TMI 1240 - ITAT HYDERABADTDS u/s 194A - non deduction of TDS on interest paid on time deposits - assessee is a cooperative bank - Held that:- By reading the above sub-section 194A(3)(v), it is clear that it is applicable to the cooperative societies and not cooperative bank. In the present case, assessee is a cooperative bank. At the same time reading the sub-section 194A(3)(viia), it explains the type of deposits which is eligible for exemption. In the present case, we are not sure, whether these deposits are time deposits or other deposits of member/shareholders of the assessee. Hence, in our considered view, this is a fit case to be remitted to the file of the AO to verify the type of deposits. If it is found that it is not time deposit, exemption may be granted. Needless to mention that proper opportunity of hearing may be given to assessee. With regard to interest payment to the non- members, the assessee represented before the CIT (A) that assessee having obtained form 15G, no TDS should be deducted. It was also represented that as per the decision of the special bench of ITAT in the case of Merilyn Shipping & Transports (supra), the amount was already paid and not payable as on 31/03/2012, in which event, TDS provisions are not applicable. On careful perusal of the above two representations, we are of the view that if the assessee had collected form 15G, it should be made available to the AO so that it can be verified and exemptions may be granted to the assessee. In the interest of justice, we remit this matter also to the file of the AO to verify the Form 15G and grant exemption
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