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2022 (2) TMI 689 - AT - Income TaxRevision u/s 263 by CIT - TDS u/s 194A - Associate Members of Co-operative Society - assessee has not deducted tax at source from the payment of interest made on deposits - Demand u/s 201(1) 201(1A) - HELD THAT - In the present case there is no dispute that the Ld.CIT(TDS) sought to revise an order passed by the Ld.AO which has been set aside by this Tribunal by its order 2021 (1) TMI 831 - ITAT BANGALORE We also note that the Ld.CIT(TDS) noted the view of this Tribunal, still sought to revise an order which is not in existence as on the date of passing of impugned order. He proceeds to discuss applicability of provisions of Section 80P, which has been considered by this Tribunal in its order dated 18/01/2021. Thus in our view, the Ld.CIT(TDS) sought to revise an inoperative order. We therefore, hold the impugned order passed by Ld.CIT(TDS) u/s. 263 of the Act, to be bad in law and deserves to be quashed. - Decided in favour of assessee.
Issues:
Appeal against order passed by Ld.CIT (TDS) for AY 2016-17; Invocation of section 263 of the Act; Revision of orders passed u/s 201(1) and 201(1A); Consideration of violation of section 18 of Karnataka Co-operative Societies Act, 1959; Applicability of threshold limits u/s 194A(3)(i)(b) and status of the appellant as 'AOP'. Analysis: The appellate tribunal, in this case, dealt with an appeal against the order passed by Ld.CIT (TDS) for AY 2016-17. The appellant raised various grounds challenging the order, including the invocation of section 263 of the Act. The tribunal considered the revision of orders passed u/s 201(1) and 201(1A) in light of the appellant's submissions and the facts of the case. It was crucial to determine whether the orders were erroneous and prejudicial to the interests of the Revenue. Regarding the violation of section 18 of the Karnataka Co-operative Societies Act, 1959, the tribunal analyzed the Ld.CIT (TDS)'s findings and the appellant's contentions. The tribunal assessed whether the Ld.CIT (TDS) erred in holding that the orders under section 201(1) and 201(1A) were erroneous due to a lack of enquiry on the violation of the provisions of the Karnataka Co-operative Societies Act, 1959. Furthermore, the tribunal examined the applicability of the threshold limits under section 194A(3)(i)(b) and the status of the appellant as an 'AOP'. The tribunal scrutinized the Ld.CIT (TDS)'s reasoning and the appellant's arguments to determine the correctness of the assessment made by the authorities. In its detailed analysis, the tribunal referred to previous judgments and legal provisions to support its conclusions. Notably, the tribunal highlighted the importance of the definition of 'member' under the Karnataka Co-operative Societies Act, 1959, in interpreting the tax deduction obligations concerning interest payments to associate members. The tribunal also emphasized the distinction between provisions of different sections of the Act, such as sec. 194A and sec. 80P, in determining the tax liability of the appellant. Ultimately, the tribunal concluded that the Ld.CIT (TDS) sought to revise an inoperative order, which had been set aside by the tribunal in a previous ruling. As a result, the tribunal held the impugned order passed by Ld.CIT (TDS) u/s. 263 of the Act to be bad in law and deserving of being quashed. The grounds raised by the appellant were allowed, and the appeal filed by the appellant was deemed successful.
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