Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (5) TMI 345 - ITAT VISAKHAPATNAMTDS u/s 194A - interest payment to a member - assessee is a co-operative society engaged in the business of banking - Held that:- Clause (v) of sub section (3) of section 194(1) of the Act provides for exemption in respect of interest on deposits paid to a member of a co-operative society including co operative bank. Prior to the amendment of section 194(1)(3)(v) of the Act w.e.f. 1.6.2015, there was no distinction between a member of a cooperative society and member of a co-operative bank. Therefore, we are of the opinion that the assessee is not liable to deduct TDS on interest payment to its members. We further noticed that in case of non members, the assessee stated that it has complied with the TDS provisions, where the interest payment exceeds ₹ 10,000/. In few cases, where interest exceeds ₹ 10,000/-, the depositors have furnished declaration in form no.15G/15H, therefore, no TDS is deducted. The CIT(A) during the course of appellate proceedings, after examining the declaration form furnished by the assessee has accepted the claim of assessee and deleted the additions. Therefore, we are of the opinion that the CIT(A) has rightly deleted the additions. - Decided in favour of assessee
|