TMI Blog2018 (7) TMI 228X X X X Extracts X X X X X X X X Extracts X X X X ..... (v) 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 date 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. SEE THE COMMISSIONER OF INCOME-TAX TDS, VERSUS THE NATIONAL CO-OPERATIVE BANK LTD BANASHANKARI 2ND STAGE BRANCH, BANGALORE [2016 (6) TMI 1118 - KARNATAKA HIGH COURT] - Decided against revenue - I.T.A No.2016/Bang/2016 - - - Dated:- 1-6-2018 - SHRI. A. K. GARO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the ITAT in the above order of Bagalkot District Central and has filed the statutory appeal before the Hon ble jurisdictional High Court. Feeling aggrieved by the order passed by the AO the assessee preferred an appeal before the CIT (A). 03. The CIT (A) in para 5.3 and 5.4 decided the issue in favour of the assessee and as such the Revenue has filed the present appeal before us. 04. It was submitted by the Ld. DR that the order of the AO is in accordance with law and the reliance was placed on the provisions of the Act and submitted that the assessee was liable to deduct the tax at the time of making the payment. As the assessee failed to deduct the tax, therefore the AO has rightly disallowed the sum of ₹ 6,26,99,189/-. 05. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly 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. In view of the above circular, the said substantial question of law does not survive for consi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tive from the prospective date 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. In view of the aforesaid Circular, this appeal does not survive for consideration and is accordingly dismissed. No costs. 3. In view of the same, the present appeal filed by Revenue is also disposed of, in the same terms.' In view of the above judgments of jurisdictional High Court , we do not find any substance and merit in the appeal filed by the Revenue as the grounds raise ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
