TMI Blog2015 (7) TMI 978X X X X Extracts X X X X X X X X Extracts X X X X ..... he Act. See case of Belgaum District Central Cooperative Bank Ltd. [2015 (7) TMI 719 - ITAT PANAJI] - Decided in favour of assessee. - ITA No. 123 to 137/PNJ/2015, &, S A Nos. 18 to 32/PNJ/2015 - - - Dated:- 19-6-2015 - George Mathan, JM And N K Billaiya, AM,JJ. For the Appellant : Shri S R Rivankar, Adv Shri Venkatesh J Shenai, CA For the Respondent : Shri Mehboob Ali Khan, DR ORDER Per: N k Billaiya: These bunch of appeals is preferred by the assessee against the separate orders of the Ld. CIT(A) involving common issues and grievance, therefore they were heard together and disposed of by this consolidated order for the sake of convenience. 2. The common grievance in all these appeals is that the Ld. CIT(A) g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Interest payment on deposits other than time deposit by a co-operative society engaged in the business of banking other than those mentioned in section 194A(3)(viia)(a) of the Act. [Section 194A(3)(viia)(b) of the Act] Therefore, as per the provisions of section 194A(1) read with provisions of section 194A(3)(i)(b) and 194A(3)(viia)(b), co-operative bank is required to deduct tax from interest payment on time deposits if the amount of such payment exceeds specified threshold of ₹ 10,000. However, as the pro-visions of section 194A(3)(y) of the Act provide a general exemption from making tax deduction from payment of interest by all co-operative societies to its members, the co-operative banks tried to avail this exemption by. maki ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ionale for treating the co-operative banks differently from other commercial banks in the matter of deduction of tax and allowing them to avail the exemption meant for smaller credit co-operative societies formed for the benefit of small number of members. However, as mentioned earlier, a doubt has been created regarding the applicability of the specific provisions mandating deduction of tax from the payment of interest on time deposits by the co-operative banks to its members by 'claiming that general exemption provided is also applicable for payment of interest to member depositors. In view of this, it is proposed to amend the provisions of the section 194A of the Act to expressly provide from the prospective date of 1st June, 2015 th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be ill-founded. The Tribunal decided the appeal in favour of the Revenue and against the assessee. With due respect to the said decision of the Tribunal, we have to say the observations made by the Tribunal are ill-founded because subsequent to the decision of the Hon'ble Bombay High Court in the case of Jalgaon District Co. Bank (supra) an information was required from the CBDT under the Right to Information Act, 2005. The information required and the reply of the Board reads as under:- Thus, with this clarification, it is clear that the circular has not been withdrawn. Moreover, a perusal of the decision of the Hon'ble High Court of Bombay in the case of Jalgaon District Co. Bank (supra) shows that the Hon'ble High ..... X X X X Extracts X X X X X X X X Extracts X X X X
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