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2015 (4) TMI 329 - AT - Income TaxTDS liability on Interest - disallowance u/s 40(a)(ia) - Exemption on interest paid on deposit to members u/s 194A(3)(v) denied - assessee is a cooperative society engaged in carrying on the business of banking - Held that:- if the amount more than ₹ 10,000/- is credited as an interest on time deposits, then the urban cooperative Bank is liable to deduct the TDS as is laid down in the said provisions of section 194A and that urban co-operative Bank is not liable to deduct TDS if the interest accrued on time deposits is less than ₹ 10,000/-. Therefore, we reverse the finding of Ld. CIT(A) and restore this issue back to the file of Assessing Officer to verify this fact as per the decision of Hon'ble Supreme Court in the case of Hindustan Coca Cola Beverages P. Ltd. (2007 (8) TMI 12 - SUPREME COURT OF INDIA) and also the decision of CIT Vs. Eli Lilly & Co. [2009 (3) TMI 33 - SUPREME COURT] whether payee has paid tax on the interest income received from the assessee society and shown the same in his income tax return. - matter remanded back.
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