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2016 (9) TMI 1078 - HC - Income TaxTDS u/s 194A - Whether the interest paid to members of a Co-operative Bank above ₹ 10,000/- should be added to tax or not?? - Held that:- The provisions of the section 194(3)(v) of the Income-tax Act have been amended so as to expressly provide that the exemption provided from deduction of tax from payment of interest to members by a co- operative society under Section 194A(3)(v) of the Income-tax Act shall not apply to the payment of interest on time deposits by the co-operative banks to its members. As this amendment is effective from the prospective dated of 1st June, 2015, the co-operative bank shall be required to deduct tax from the payment of interest on time deposits of its members, on or after the 1st June 2015. Hence, a cooperative bank was not required to deduct tax from the payment of interest on time deposits of its members paid or credited before 1st June 2015 Gratuity payable to its employees - availability for deduction - Held that:- The counsel for the assessee would be quick to point out that even if it is not permissible to make a deduction, in such an event, on making payment as provided under Section 43-B (b), it would be permissible if the actual payment is made and these sections are mutually exclusive and therefore, the Karnataka Electricity Board case is no longer relevant, by virtue of the amendment to Section 40-A(7). Under Section 43-B, the assessee had not merely made a provision but payment was actually made and therefore, was entitled to deduction, would also answer this question as to whether the payment made towards a gratuity fund could be deducted. Interest receivable from non-performing assets, bad and doubtful debts - the actual expression used is interest payable and not reflected in the profit and loss account, could be deducted? - Held that:- the mere nomenclature adopted with reference to the bad loans and advances receivable, would refer to all non- performing assets of any nature, of whatever category it was placed as a non-performing asset and therefore, the decision of this court in Canfin Homes [2011 (8) TMI 178 - KARNATAKA HIGH COURT ]would squarely apply. Accordingly, the above question of law also stands answered
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