Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2023 (7) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (7) TMI 863 - JAMMU AND KASHMIR AND LADAKH HIGH COURTTDS u/s 194A - interest income accrued on the Term Deposit Accounts of the JKSRRDA - failure of the assessee to deduct tax at source u/s 194A on the interest paid/accrued on the Term Deposit Accounts of the JKSRRD, a society registered under J&K Societies Registration Act, Svt. 1998 - HELD THAT:- The JKSRRDA being a body wholly financed by the Government was covered by S.O 3489 dated 27.10.1970 and, therefore, no separate notification in the official Gazette was required to be issued by the Central Government to include JKSRRDA specifically within the ambit of exemption provided under Section 194A (3)(iii)(f) of the Act. Once the two Forums below have returned concurrent findings of fact that the funds released for implementation of PMGSY by JKSRRDA and deposited in the account known as “Programme Fund/Account” were the funds/money belonging to the Central Government, there should be no dispute that, in terms of Section 196 of the Act, no deduction of tax is to be made by any person from any sum payable to the Government. It is, thus, abundantly clear that the interest paid or accrued on the Term Deposit Accounts under Saving Bank Account of JKSRRDA was the money belonging to the Central Government and, therefore, exempted from deduction of income tax at source u/s 194A. Thus raising a demand on account of failure of the assessee/Bank to deduct tax at source u/s 194A on the interest income accrued on the Term Deposit Accounts of the JKSRRDA was legally and factually flawed as JKSRRDA is a society registered under the Act of 1998 is a body wholly financed by the Central Government for implementation of PMGSY and, therefore, exempt from TDS in terms of Notification No.3489 dated 22.10.1970 issued by the Central Government under Section 194A(3)(iii)(f) - Decided in favour of assessee.
|