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2019 (3) TMI 565 - AT - Income TaxTDS u/s 194A - non deduction of tds on time deposits - whether a co-operative bank as per the pre-amended Sec. 194A(3)(v) remained under a statutory obligation to deduct tax at source on the interest paid to its members? - scope of amendment - HELD THAT:- As per the preamended clause (v) to Sec. 194A(3) of the IT Act (i.e prior to its amendment vide the Finance Act, 2015 w.e.f 01.06.2015), a co-operative bank was under no obligation to deduct tax at source on the interest credited or paid to a member prior to 01.06.2015. We thus after considering the aforesaid CBDT Circular No.19/2015, dated 27.11.2015 and respectfully following the aforementioned judicial pronouncements which seizes the issue under consideration, therein conclude that as per the mandate of law as was available on the statute during the year under consideration viz. A.Y 2012- 13, no statutory obligation was cast upon the assessee co-operative society to deduct tax at source on the interest that was paid or credited by it on the time deposits of its members. On the basis of our aforesaid observations, the disallowance of the interest expenditure made by the A.O u/s 40(a)(ia) for the alleged failure on the part of the assessee to deduct tax at source on the said amount under Sec. 194A is vacated - Disallowance u/s 40(a)(ia) - decided in favour of assessee.
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