TMI Blog2014 (7) TMI 589X X X X Extracts X X X X X X X X Extracts X X X X ..... O - it can be said that assessee was under bonafide belief that on payment of MICR charges no TDS was to be deducted by it – The decision in Canara Bank Vs. ITO [2008 (2) TMI 515 - ITAT AHMEDABAD-B ] followed - assessee was required to deduct TDS on MICR charges assessee has been regularly deducting tax on payment - assessee was prevented by reasonable cause in not deducting TDS on the payment of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the case are that assessee is a co-operative bank. During the assessment proceedings, AO observed that the assessee has not deducted TDS from the payment made to the State Bank of India as MICR charges during the year under appeal. According to AO assessee should have deducted TDS on this payment u/s. 194J of the Act. Since such payments were towards fees for technical charges which was charged fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee submitted that assessee was in bonafide belief that TDS was not deductable on MICR charges as in earlier years also no such TDS was deducted and no action was taken by the revenue against the assessee. Therefore, in the year under appeal assesssee did not deduct TDS under a bonafide belief that payment of MICS charges was not in the nature of fees for technical charges. However after the deci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that TDS was not deducted on MICR charges. It is also not in dispute that in earlier years also assessee was not deducting TDS on these charges and no penal action was initiated by the AO. Thus, it can be said that assessee was under bonafide belief that on payment of MICR charges no TDS was to be deducted by it. We further find that after the controversy was resolved by the Hon'ble Tribunal, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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