9911796707
TMI Blog2018 (7) TMI 292X X X X Extracts X X X X X X X X Extracts X X X X ..... f the present case . Therefore the contention of ld DR is not correct. This case is also covered in favour of assessee by case of Vasavamba Cooperative Bank Ltd (2018 (7) TMI 229 - ITAT BANGALORE) - Decided in favour of assessee. - I.T.A No.1384/Bang/2018 - - - Dated:- 4-7-2018 - SHRI. INTURI RAMA RAO, ACCOUNTANT MEMBER AND SHRI. LALIET KUMAR, JUDICIAL MEMBER For The Assessee : Shri. Sandeep C, CA For The Revenue : Dr. P. V. Pradeep Kumar, Addl. CIT ORDER PER LALIET KUMAR, JUDICIAL MEMBER : The present appeal is filed by the assessee against the order of the CIT (A), Mysuru, dt.28.02.2018, for the assessment year 2012- 13, on the following grounds : 2. The learned Commissioner of Income Tax (Appeals) erred in law and on facts in holding that interest on deposits paid in excess of ₹ 10,000/- to its members is liable for tax deduction at source u/s.194A of the Act. 3. That the learned Commissioner of Income Tax (Appeals) erred in law and on facts in not considering the amendment made in Finance Act, 2015 which clarifies that the Co-operative Bank is liable for making TDS on interest exceeding ₹ 10,000/- on the deposits made b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... banking, where interest paid by such society is in excess of ten thousand rupees. Section 194A(3)(v) of the Act provides that tax need not be deducted at source where the income in the form of interest is credited or paid by a cooperative society to a member thereof or to any other cooperative society. In the instant appeal, the onus was on the appellant to prove with credible and verifiable documentary evidence that the expenditure incurred by way of interest of ₹ 50,47,173/- which was claimed to have been paid by the appellant was exempt as per the provisions of Section 194A(3)(v) of the Act. As no factual evidence was adduced to support the appellant's claim that the aforesaid interest of ₹ 50,47,173/- was exempt from deduction of taxes at source, it is held that the failure of the appellant to deduct taxes at source from the payment of interest of ₹ 50,47,173/- attracted the provisions of section 40(a)(ia) of the Act for having violated the provisions of section 194A(3)(i)(b) of the Act. Accordingly, the 2nd and the 3rd grounds of appeal are dismissed on facts. The 4th ground of appeal was taken to state that the Assessing Officer erred in not following t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ding recorded by the coordinate bench in para 6 of the order is reproduced hereunder : 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 dismissed the appeal of the Revenue and held in favour of the assessee : 06. We have heard the rival contentions and perused the record. The assessee before the AO had relied upon the decision of the Tribunal in The Bagalkot District Central Coop. Bank (supra) and it was the case of the AO that the Revenue is in appeal before the Hon ble jurisdictional High Court on the said matter. However, we notice that the appeal of the Revenue in the matter of The Bagalkot District Central Co-op. Bank (supra) was decided by the Division Bench vide its judgment dt.16.12.2015, which was aptly mentioned by the jurisdictional ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... posits of its members paid or credited on or before 1.6.2015. The relevant portion of the circular reads as under: 42.5 In view of this, the provisions of the section 194A(3)(v) of the Income-tax Act have been amended so as to expressly provide that the exemption provided from deduction of tax from payment of interest to members by a co- operative society under section 194A(3)(v) of the Income-tax Act shall not apply to the payment of interest on time deposits by the co-operative banks to its members. As this amendment is effective from the prospective date 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 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 m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... out whether it is possible to construe harmoniously the two provisions. If it is not possible then an effort will have to be made to ascertain whether the legislature had intended to accord a special treatment vis- -vis the general entries and a further endeavour will have to be made to find out whether the specific provision excludes the applicability of the general ones. Once we come to the conclusion that intention of the legislation is to exclude the general provision then the rule general provision should yield to special provision is squarely attracted. 42. Having noticed the aforesaid, it could be concluded that the rule of statutory construction that the specific governs the general is not an absolute rule but is merely a strong indication of statutory meaning that can be overcome by textual indications that point in the other direction. This rule is particularly applicable where the legislature has enacted comprehensive scheme and has deliberately targeted specific problems with specific solutions. A subject specific provision relating to a specific, defined and descriptable subject is regarded as an exception to and would prevail over a general provision relating ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) shall not apply- ( i) where the amount of such income or, as the case may be, the aggregate of the amounts of such income credited or paid or likely to be credited or paid during the financial year by the person referred to in sub-section (1) to the account of, or to, the payee, does not exceed- ( a) ten thousand rupees, where the payer is a banking company to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution, referred to in section 51 of that Act); ( b) ten thousand rupees, where the payer is a co-operative society engaged in carrying on the business of banking; ( c) ten thousand rupees, on any deposit with post office under any scheme framed by the Central Government and notified by it in this behalf; and ( d) five thousand rupees in any other case: .. ( ii) to (iv) .. ( v) to such income credited or paid by a co-operative society to a member thereof or to any other co-operative society; ( vi) (vii) .. ( viia) ................................ 07. The present case before us pertains to the payments made by way of interest by the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
