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TMI Blog2014 (1) TMI 851X X X X Extracts X X X X X X X X Extracts X X X X ..... to the Govt. and can be used only for the purpose of a particular project, there was no reason to deduct the tax because such Societies are being funded by the Govt. on 100% basis - Societies which are being wholly funded by the Govt. would qualify for non-deduction of tax the Societies are not wholly financed by the Central Govt Decided against Revenue. - IT Appeal Nos. 1306 & 1307 (CHD.) of 2012 - - - Dated:- 14-6-2013 - T.R. SOOD AND SUSHMA CHOWLA , JJ. For the Appellant : J.S. Nagar. For the Respondent : Vishal Mohan. ORDER:- PER : T.R. Sood These appeals by the Revenue are directed against the common order passed by the Ld. CIT(A), Shimla dated 11/09/2012. 2. In both the appeals, the Revenue has raised the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e tax had not deducted the tax on interest paid /credited on FDRs to various societies, Trusts etc. In response to the notice, details were submitted by the assessee regarding deposits from Societies / Trusts etc. However, no submissions were made for the reasons for non-deducting the tax. According to Assessing Officer, the assessee was duty bound to deduct the tax u/s 194A(3) from the interest paid to various societies and trusts etc. at the rates prescribed. Since, no TDS was deducted, the assessee was held to be in default u/s 201 and interest was also charged u/s 201A in case of interest paid to Society of Biotech Biobusiness and HP SITEG for financial years 2008-09 to 2010-11 and Rogi Kalyan Samiti Kamla Nehru Hospital Mandi Mitra M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ies mentioned therein. Heavy reliance was placed on the order of the ITAT, Jaipur, 'B' Bench in the case of ITO v. Branch Manager, State Bank of Bikaner and Jaipur ( 2012 ) 19 T ax man n. Com 221. It was further argued that both the societies are registered u/s 12A and no tax is payable by them. Therefore, no liability u/s 201(1)/201(1A) can be imposed on the appellant in view of the decision of the Supreme Court in the case of Hindustan Coco Cola (P.) Ltd. v. C IT 293 IT R 2 26. 5. The Ld. CIT(A) after examining the submissions found that funds were received by the society from various ministries of Govt. of India. The communication from the Ministry made it clear that funds were released to the society for promotion of Biotechnology and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... financed wholly by the Government would be covered by the notification. This means that no tax is required to be deducted in view of sub-section (3) to section 194A. He contended that there is no requirement for issuing notification for each of the Society seperately. In any case, the issue is covered by the decision of Jaipur Bench of the Tribunal in the case of Branch Manager, State Bank of Bikaner Jaipur (supra). 8. We have considered the rival submissions carefully and find force in the submissions of Ld. Counsel of the assessee. The relevant portion of section 194A is as under:- Section 19 4A (3) The provisions of sub-section (1) shall not apply - (i) .. (ii) . (ii ..... X X X X Extracts X X X X X X X X Extracts X X X X
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