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2014 (1) TMI 851 - ITAT CHANDIGARHDeletion of demand made u/s 201(1)/201(1A) of the Act – Exemption u/s 194A(3)(iii)(f) of the Act – Eligibility for Exemption – Separate application to be made - Revenue was of the view that the assessee is in default for not deducting tax at source u/s 194A(3) on interest paid / credited to societies – Held that:- There is no requirement for issuing individual instructions by the Central Govt. because clause (f) talks about particular types of institutions - The reason for this is that Govt. might have decided that wherever various funds are being provided to various societies or trusts for specified schemes, that since funds belong to the Govt. and can be used only for the purpose of a particular project, there was no reason to deduct the tax because such Societies are being funded by the Govt. on 100% basis - Societies which are being wholly funded by the Govt. would qualify for non-deduction of tax – the Societies are not wholly financed by the Central Govt – Decided against Revenue.
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