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2015 (4) TMI 374 - HC - Income TaxLiability on urban co-operative Bank to deduct the TDS - Held that:- It is a settled proposition of law that various sub-sections in a provision have to be read in harmony. A head on collision between sub-sections of the same provision has to be avoided. They cannot be read in a matter which render one provision superfluous of a dead letter. Reading clause (viia) and clause (v) conjointly and in harmony the only irresistible conclusion that can be drawn is that interest above ₹ 10,000/- credited on time deposits by urban co-operative Bank in the account of the payee would be liable for deduction of the tax at source, meaning thereby that an interest credited below ₹ 10,000/- by urban co-operative Bank will not be liable for the tax deducted at source. Even the learned Asstt. Solicitor General conceded to the position that for amount below ₹ 10,000/- TDS is not required to be deducted by the urban co-operative Bank. The Circular dated 23.10.2003, issued by respondent no.3, thereby directing deduction of tax at source on the deposits does not clarity the aforesaid aspect. The Circular will have to be read in a manner that if the amount more than ₹ 10,000/- is credited as an interest on time deposits. Then the urban co-operative Bank is liable to deduct the TDS as is laid down in 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/-.
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