TMI Blog2013 (3) TMI 673X X X X Extracts X X X X X X X X Extracts X X X X ..... the depreciation claim of the taxpayer. Disallowance u/s 40(a)(ia) - Non-deduction of TDS on interest u/s 194A(3)(viia) - Taxpayer, an agriculture Co-operative society, was accepting deposits and maintaining savings bank account and current bank account. The taxpayer was also providing cheque facilities to its customers. - HELD THAT : - Taxpayer is engaged in banking activities, hence bound to deduct tax u/s 194A(3)(viia) of the Act. - I.T.A No. 311/Coch/2012 - - - Dated:- 22-3-2013 - Before Shri N.R.S. Ganesan (JM) AND Shri B.R. Baskaran(AM) For the Appellant: Shri Ramanatha Prabhu For the Respondent: Smt. Susan George Verghese O R D E R Per N.R.S. Ganesan (JM) This appeal of the taxpayer is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e next ground of appeal is with regard to depreciation. 5. Shri Ramanatha Prabhu, the ld.representative for the taxpayer submitted that the taxpayer has filed all the particulars with regard to depreciation. However, the assessing officer without any discussion disallowed part of the depreciation. The taxpayer claimed ₹ 2,12,711 as depreciation. However, the assessing officer, without any reason restricted the same to ₹ 35,709. The CIT(A) without considering this confirmed the order of the assessing officer on the ground that the taxpayer has not filed any details before the assessing officer. In fact, the taxpayer has filed all the details required for compution of depreciation. 6. We heard, Smt. Susan George Verghese, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot applicable to agricultural co-operative societies. Therefore, it was found that tax need not be deducted. In this case also, the taxpayer is an agricultural co-operative society and not agricultural co-operative bank. Therefore, acording to the ld.representative, the decision of this Tribunal in the case of Kadachira Service Co-operative Bank Ltd (supra) is equally applicable to the case of the taxpayer. 10. On the contrary, Smt. Susan George Verghese, the ld.DR submitted that though the taxpayer was registered as an agricultural co-operative society, in fact, they are doing banking business. The ld.DR submitted that they are issuing cheques to their customers and banking operations are being carried on by the taxpayer. Therefore, acc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the admitted fact that the taxpayer is maintaining savings account, current account and providing cheque facility to its customers, it is obvious that the taxpayer is engaged itself in the business of banking apart from other trading activities. Exemption u/s 194A(3)(viia) is applicable only in respect of agricultural cooperative societies. The agricultural co-operative banks are bound to deduct tax. In this case, admittedly, the taxpayer is engaged in the banking activity and maintaining savings bank account, current account and providing cheque facility to its customers. Therefore, the taxpayer is bound to deduct tax in respect of interest on the deposits. Therefore, this Tribunal is of the considered opinion that the decision in the c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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