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TMI Blog2016 (4) TMI 644X X X X Extracts X X X X X X X X Extracts X X X X ..... rs on deposits by virtue of exemption granted vide clause (v) of the sub-section (3) of the said section. - Decided in favour of assessee - I.T. A. No.790/Bang/2015, I.T. A. Nos. 791 & 792/Bang/2015, I.T. A. Nos.793 & 794/Bang/2015 - - - Dated:- 24-2-2016 - SHRI VIJAYPAL RAO, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER For The Appellant : Shri Sunil Kumar Agarwala, JCIT (D.R) For The Respondents : Mrs. Sheetal, Advocate. ORDER Per Bench : These five appeals by the Revenue are directed against the orders of Commissioner of Income Tax (Appeals)-13 dt.24.3.2015 arising from the order passed under Section 201(1) and 201(1A) of the Income Tax Act, 1961 (in short 'the Act') for the Assessment Y ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (Appeals) has followed the decision of this Tribunal in the case of The Bagalkot District Central Co-operative Bank in ITA No.1572/Bang/2013 dt.30.5.2014. 3. We have heard the learned Departmental Representative as well as learned Authorised Representative and considered the relevant material on record. There is no dispute that the Assessing Officer has invoked the provisions of sections 201(1) and 201(1A) of the Act in respect of the payment of interest by the assessee to its members and to the other co-operative societies for want of deduction of tax at source. At the outset, we note that an identical issue was considered and decided by the co-ordinate bench of this Tribunal vide order dt.30.5.2014 in the case of Bagalkot Central Dist ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... v) a Co-operative Society irrespective of its nature of activity need not deduct tax at source on any interest paid to its members whether on time deposits or non-time deposits c) U/s l94A(3)(viia)(a), a primary agricultural credit Co-operative Society or a Cooperative land mortgage bank or a co-operative land development bank need not deduct tax at source on any interest paid by it in respect of deposits received by it. d) U/s 194A(3)(viia)(b) of the Act a co-operative society other than a cooperative society or a bank referred to in Clause (a) need not deduct tax at source on interest paid on any deposit other than time deposits. 2.3 The following chart explains the position: Type of Intere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... there will be a conflict between 194A(3)(viia)(b) and S. 194A(3)(v). It was his submission that there is no conflict. S.194A(3)(viia)(b) would apply to all co-operative banks when they pay interest on deposits other than time deposit whether to members or non-members whereas S. 194A(3)(v) applies to payment to members including interest on time-deposits . The classification itself is different. S.194A(3)(v) classifies the payees into members or non-members whereas 194A(3)(viia)(b) classifies the nature of interest whether it is on time deposit or a non-time deposit When the classification is on a totally different criterion, there cannot be any conflict between the two sections. They operate in two different fields. It is respectfully subm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion and no disallowance is called for u/s 40(a)(ia) of the Act. 14. The learned DR while reiterating the stand of the AO/CIT(A)further relied on the decision of the ITAT Panaji Bench in ITA No.85/PN/2013 for AY 09-10 in the case of The Bailhongal Uraban Co-op Bank Ltd. Vs. JCIT order dated 28.8.2013 wherein the Tribunal followed the order of SMC Bench in the case of Bhagani Nivedita Sah Bank Ltd. Vs. ACIT 87 ITD 569 (Pune). Without prejudice to his submission that TDS provisions were applicable even in the case of payment of interest to member depositors by a co-operative society, it was submitted by him that the order of the AO/CIT(A) is not clear as to whether the interest disallowed pertains to interest paid to members or nonmembe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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