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2014 (2) TMI 1346 - AT - Income TaxTDS u/s 194 - Disallowance u/s 40(a)(ia) - interest payments to the nominal members without deduction of tds - Held that:- We are of the view that nominal members are to be considered as members in view of the decision of Hon'ble Punjab & Haryana High Court in the case of CIT vs. Punjab State Co-operative Bank Ltd. (2008 (3) TMI 45 - HIGH COURT PUNJAB AND HARYANA). Accordingly, the assessee was not required to deduct tax at source on interest payments to the nominal members, who are members therefore, no disallowance under section 40(a)(ia) of the Act can be made. Also in the case of Jalgaon District Central Co-operative Bank Ltd. v. Union of India [2003 (9) TMI 56 - BOMBAY HIGH COURT] held that where the legal validity of Circular No.9 of 2002 dated 11.9.2002 was questioned and the said circular was quashed and set aside. Accordingly, there is no distinction between member and nominal member as far as provisions of section 80P and 194(3)(v) are concerned. In the facts and circumstances of the case, the order of the ld. CIT(A) is reversed and the A.O. is directed to delete the disallowance so made. - Decided in favour of assessee. Also disallowance on account of admission fees cannot be disallowed
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