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2016 (6) TMI 1118 - HC - Income TaxTDS u/s 194A - tds applicability on Co-operative Banks - Held that:- In view of the referred decision of this Court in case of Bagalkot District Central Co-operative Bank [2015 (1) TMI 1005 - ITAT BANGALORE] wherein held that Co-Operative Societies carrying on banking business while paying interest to members on time deposit and deposits other than time deposits need not deduct tax at source U/s 194-A of the Act by virtue of exemption granted U/s 194-A(3)(v) of the Act when the question is already covered by the decision of this Court, it cannot be said that any substantial question of law would arise for consideration. However, the learned counsel appearing for the appellants-Revenue made an attempt to contend and reiterate the same contention that in view of special provision Section 194A(3) (b), the general exemption as provided under 194A(3) (v), would not be applicable for the Co-operative Banks and he contended that the view taken by the Tribunal cannot be said as correct view and this Court may independently consider the matter and may hold that in view of specific provision, general exemption would not be available to co-operative bank. Hence the TDS from the interest exceeding the amount of ₹ 10,000/- was required to be deducted by the respondent-assessee in the present case which is a co-operative bank. As such, we are not impressed by the submission that there is any specific provision and therefore general exemption would not apply for the simple reason that the word ‘Members’ is missing in clause (b). Further, in Circular No.19/2015 dated 27.11.2015 at paragraph 42.5 it has been inter alia mentioned as under: “………Hence, the Co-operative Bank was not required to deduct tax from the payment of interest on the time deposits of its members paid or credited before first June 2015’. Under the circumstances, the question of specific provision as against general provision would not arise for further consideration.
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