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2021 (1) TMI 748 - AT - Income TaxTDS u/s 194A - Assessee society had paid interest on deposits - Non deduction of TDS - whether any interest was paid to members less than ₹ 10,000/- so that the provisions of section 194A of the Act will not apply to such payments? - HELD THAT:- We are of the view that the analogy so drawn by the CIT(A) is erroneous. The provisions of Sec.194A which are in relation to deduction of tax at source cannot be equated with the provisions of Sec. 80P(2)(a)(i) of the Act, which deals with deduction while computing total income. The admitted position is that the sum has been paid to Associate Members and CIT(A) has equated it and named them as non-members. In our view this approach is erroneous. For the AY 2015-16, there is no obligation to deduct tax at source by a Co-operative Society u/s.194A of the Act as laid down by the Hon’ble Karnataka High Court in the case of CIT Vs Karnataka State Apex Cooperative Bank Ltd. [2016 (6) TMI 1409 - KARNATAKA HIGH COURT] - We therefore delete the addition sustained by the CIT(A). - Decided in favour of assessee.
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