9911796707
TMI Blog2016 (5) TMI 345X X X X Extracts X X X X X X X X Extracts X X X X ..... noticed that in case of non members, the assessee stated that it has complied with the TDS provisions, where the interest payment exceeds ₹ 10,000/. In few cases, where interest exceeds ₹ 10,000/-, the depositors have furnished declaration in form no.15G/15H, therefore, no TDS is deducted. The CIT(A) during the course of appellate proceedings, after examining the declaration form furnished by the assessee has accepted the claim of assessee and deleted the additions. Therefore, we are of the opinion that the CIT(A) has rightly deleted the additions. - Decided in favour of assessee - I.T.A.No.251/Vizag/2014 - - - Dated:- 31-3-2016 - SHRI V. DURGA RAO, JUDICIAL MEMBER AND SHRI G. MANJUNATHA, ACCOUNTANT MEMBER For The Appell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he TDS provisions in respect of interest payment to non members, wherever interest amount exceeds ₹ 10,000/-. But, stated that in respect of interest payments to members, as per the provisions of section 194A(1)(3)(v) of the Act, TDS is not applicable on interest payments to members. The assessee further submitted that wherever interest payment exceeds ₹ 10,000/-, it has accepted form no.15G/15H from the depositors, where they have declared that the taxable income is less than taxable limit. Therefore, there is no defaults in TDS compliances and hence, it cannot be considered as assessee in default under sec. 201(1) of the Act. The A.O., after considering the details furnished by the assessee, held that the assessee has failed t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... term co-operative society and co-operative bank in clause (v) to sub section (3) of section 194A of the Act is not defined. The CIT(A) after considering the submissions of the assessee and also taking into account the remand report of the assessing officer, deleted the additions made by the A.O. The CIT(A) held that as per the provisions of section 194A(1)(3)(v) of the Act, no TDS is deductible for interest payments to member of a co-operative society. With these observations, the CIT(A) deleted the additions made by the A.O. Aggrieved by the CIT(A) order, the revenue is in appeal before us. 4. The Ld. D.R. submitted that the CIT(A) was erred in deleting the additions made by the A.O. towards TDS and interest u/s 201(1) 201(1A) of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y operation u/s 133A of the Act is conducted in the business premises of the assessee. During the course of survey proceedings, it was noticed that the assessee has not deducted TDS on interest payment on deposits in respect of members and non members. The A.O. was of the opinion that the assessee has failed to deduct TDS as per section 194A(1) of the Act and therefore, held that assessee as an assessee in default u/s 201(1) 201(1A) of the Act. It was the contention of the assessee that it has complied with the TDS provisions, where the interest payment to a non member exceeds ₹ 10,000/-. Further, in case of members, as per the provisions of section 194(1)(3)(v) of the Act, interest payment to a member is exempt from deduction of ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ue. 6. During the course of hearing, the A.R. of the assessee submitted that the issue involved in this appeal is squarely covered by the decision of ITAT, Visakhapatnam bench, in the case of ACIT Vs. Visakhapatnam Co-operative Bank Ltd. in ITA No.5/Vizag/2011. We have gone through the case law relied upon by the assessee, in the light of the facts of the present case. The coordinate bench of this Tribunal, under similar circumstances held that interest on deposits paid to members of cooperative society is exempt from TDS provisions u/s 194A(1) of the Act. The relevant portion is reproduced hereunder: It can be seen that neither sec.2(19) nor sec. 194A(3) makes any discrimination between the co-operative societies carrying on ban ..... X X X X Extracts X X X X X X X X Extracts X X X X
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