TMI Blog2021 (2) TMI 134X X X X Extracts X X X X X X X X Extracts X X X X ..... 194A(3) provides that the provisions of sub-section (1) of Section 194A will not apply in certain contingencies. One of the contingencies is provided in sub clause (v). This contingency relates to income credited or paid by a cooperative society to a member thereof. There is no dispute that this was the position for the Assessment Year 2012-2013 and therefore, we feel that the CIT (Appeals) as well as the ITAT were quite right in reversing the Assessing Officer's order and holding that there was no liability for deducting tax at source in respect of amount of interest paid by the cooperative society to its members, even though such amount may have exceeded ₹10,000/-. No doubt, by the Finance Act, 2015 which entered into forc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stions of law which are set out in the said order. However, the learned counsel for the parties point out that none of these questions arise in the present appeal and such questions were framed, on account of incorrect tagging of this matter along with other matters which were presumed to be connected to this matter. 4. Ms. Linhares, learned counsel for the Appellant submits that the substantial question of law which arises in this appeal is the one set out in paragraph 5 (c) of the appeal memo and the same reads as follows:- Whether the ld. ITAT has erred in not appreciating that there is nothing in 194A(3)(i)(b) or 194A(3)(viia)(b) to restrict their application to only non members particular when the legislature has not so intende ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e same. 8. In this case, the Respondent Assessee filed his return of income for Assessment Year 2012-2013 declaring total income of ₹88,83,130/-. This was followed by a revised return declaring a loss of ₹6,91,77,785/-. The case was selected for scrutiny and due notice under Section 143(2) of the Income Tax Act, 1961 (IT Act) was issued to the Assessee. In the context of substantial question of law now framed, suffice to state that the Assessing Officer disallowed the interest of ₹27,09,30,388/- paid to various members of the Society ( where individual interest amount exceeded ₹10,000/-) in terms of Section 40(a)(ia) on the ground that the Assessee failed to deduct tax at source on the said amount and deposit th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ertain contingencies. One of the contingencies is provided in sub clause (v). This contingency relates to income credited or paid by a cooperative society to a member thereof. There is no dispute that this was the position for the Assessment Year 2012-2013 and therefore, we feel that the CIT (Appeals) as well as the ITAT were quite right in reversing the Assessing Officer's order and holding that there was no liability for deducting tax at source in respect of amount of interest paid by the cooperative society to its members, even though such amount may have exceeded ₹10,000/-. 12. No doubt, by the Finance Act, 2015 which entered into force with effect from 01.06.2015, clause (v) of Section 194A(3) came to be amended and the ex ..... X X X X Extracts X X X X X X X X Extracts X X X X
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