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TMI Blog2018 (7) TMI 229X X X X Extracts X X X X X X X X Extracts X X X X ..... o-operative bank shall be required to deduct tax from the payment of interest on time deposits of its members, on or after the 1st June, 2015. Hence, a cooperative bank was not required to deduct tax from the payment of interest on time deposits of its members paid or credited before 1st June, 2015. See ACIT v. The Bellary Dist. Co-operative Central Bank Ltd [2018 (7) TMI 228 - ITAT BANGALORE] - Decided in favour of assessee. - I.T.A No.1386/Bang/2018 - - - Dated:- 1-6-2018 - SHRI. A. K. GARODIA, ACCOUNTANT MEMBER AND SHRI. LALIET KUMAR, JUDICIAL MEMBER Assessee by : Shri. S. Ramasubramanian, CA Revenue by : Smt. Padmameenakshi, JCIT O R D E R PER LALIET KUMAR, JUDICIAL MEMBER : The present appeal is filed by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 347 ITR 382] and the decision of the coordinate bench of the Tribunal in Bagalkot District Central Co-operative Bank Ltd v. JCIT [ITA No.1572/Bang/2013, dt.30.05.2014]. 05. Per contra, the Ld. DR relied upon the orders passed by the lower authorities. 06. We have heard the rival contentions and perused the record. In the coordinate bench in a recent decision in ACIT v. The Bellary Dist. Co-operative Central Bank Ltd [I.T.A No.2016/Bang/2016, dt.01.06.2018] has considered the judgments cited by the AO as well as by the assessee and after relying upon the judgment of the Hon ble jurisdictional High Court in para 6, which is reproduced herein below, in the matter of CIT v. Bijapur District Central [(2018) 93 taxmann.com 211], had dismis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the co-operative banks to its members. As this amendment is effective from the prospective dated of 1st June, 2015, the co-operative bank shall be required to deduct tax from the payment of interest on time deposits of its members, on or after the 1st June, 2015. Hence, a cooperative bank was not required to deduct tax from the payment of interest on time deposits of its members paid or credited before 1st June, 2015. In view of the above circular, the said substantial question of law does not survive for consideration. Moreover, the Division Bench in the matter of Bijapur District Central (supra) in para 6 had held as under : 6. This Court in the aforesaid case of Karnataka Vikas Grameena Bank held as under : '1. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s not required to deduct tax from the payment of interest on time deposits of its members paid or credited before 1st June, 2015. In view of the aforesaid Circular, this appeal does not survive for consideration and is accordingly dismissed. No costs. 3. In view of the same, the present appeal filed by Revenue is also disposed of, in the same terms.' Following the decision of the coordinate bench in the matter of The Bellary Dist. Co-operative Central Bank Ltd (supra), we find substance and merit in the appeal of the assessee and accordingly ground nos.2 and 3 of the assessee are decided in favour of the assessee. The AO is directed to allow the expenditure of ₹ 1,09,16,354/-. 08. Ground no.4 is not pressed before us ..... X X X X Extracts X X X X X X X X Extracts X X X X
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