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TMI Blog2018 (3) TMI 1527X X X X Extracts X X X X X X X X Extracts X X X X ..... ng, he has to pay tax on the Revenue which has accrued notionally is without any basis. In that view of the matter, the substantial question o law is answered against the Revenue and in favour of the assessee. Co-operative Bank is not required to deduct tax while paying interest under Section 194A. See Bagalkot District Central Co- op. Bank . See CIT v/s Bagalkot District Central Co-op. Bank [2016 (7) TMI 748 - KARNATAKA HIGH COURT] Securities categorized and accounted as “held to maturity” were stock-in-trade and could not be considered as investments and accordingly answered the said question against the Revenue. See Karnataka Vikas Grameen Bank [2015 (12) TMI 1420 - KARNATAKA HIGH COURT] - I.T.A.NO.100087/2015 C/W I.T.A.NO.10008 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3. Heard learned counsel appearing for the parties and perused the material on record. 4. Learned counsel Sri Y.V.Raviraj appearing for the appellants fairly submits that the substantial questions of law involved in these appeals are no more res integra in view of the judgment of the Co-ordinate Bench of this Court rendered in the following cases : a) The Commissioner of Income Tax and another V/s Shri Siddeshwar Co- operative Bank Limited and others in ITA No.200002/2015 C/w 200004/2014, 200005/2014, 200006/2014, 200007/2014 and 200008/2014 (DD 22.06.2016) b) The Commissioner of Income Tax and another V/s the Bagalkot District Central Co-op. Bank, ITA No.100116/2014 (D.D. 16.12.2015) c) The Commissioner of Income Ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the Circular No.19/2015 in F.No.142/14/2015-TPL, has held that the Co-operative Bank is not required to deduct tax while paying interest under Section 194A of the Act. Accordingly, appeal filed by the Revenue has been dismissed. Hence, we answer this second question against the Revenue. 7. As regards the 3rd question, the said issue is covered by the Co-ordinate Bench judgment of this Court in Karnataka Vikas Grameen Bank (supra). The Co-ordinate Bench of this Court has held that securities categorized and accounted as held to maturity were stock-in-trade and could not be considered as investments and accordingly answered the said question against the Revenue. We are in respectful agreement with the view taken by the Co- ordinate B ..... X X X X Extracts X X X X X X X X Extracts X X X X
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