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TMI Blog2019 (12) TMI 915X X X X Extracts X X X X X X X X Extracts X X X X ..... period of maturity. The assessee claimed towards amortization for the impugned assessment year. The AO treated the same as contingent liability and disallowed the same. Against which the assessee went on appeal before the CIT(A) and the CIT(A) allowed the appeal of the assessee following the order of this Tribunal in the assessee s own case for the A.Y. 2012-13 and 2013-14 - Issue is remitted back to the file of the AO with a direction to decide the appeal afresh as per the directions given by the Ld.CIT(A) and also keeping in view of latest direction of the RBI - I.T.A.No.453/Viz/2019 and 454/Viz/2019, Cross Objection No. 146/Viz/2019 and 147/Viz/2019 Arising out of I.T.A.No.453/Viz/2019 and 454/Viz/2019) - - - Dated:- 18-12-2019 - Shri V. Durga Rao, Judicial Member And Shri D.S. Sunder Singh, Accountant Member For the Assessee : Shri G.V.N.Hari, AR For the Revenue : Shri D.K.Sonowal, CIT, DR ORDER PER SHRI D.S.SUNDER SINGH, ACCOUNTANT MEMBER : Delay: The revenue has filed appeal with the delay of 73 days and also filed condonation petition requesting to condone the delay. W ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gistered under the Cooperative Societies Act, it is not a cooperative society and it is a cooperative bank. Taking into consideration of the nature of activities carried on by the assessee, AO held that the assessee is liable to deduct the tax on the interest paid to members also. The AO took support from the decision of Hon ble ITAT in the case of ACIT circle -2,Belgaum Vs.Belgaum District Central Coop Bank Ltd.- 2015(1)TMI 743-ITAT-Panaji. Further, the AO is of the view that the amendment to section 194A of the Act vide Finance Act, 2015 is clarificatory and therefore retrospective in nature. The Ld.CIT(A) followed the order of this Tribunal in I.T.A. No.211 212/Viz/2018 dated 17.08.2018 in the assessee s own case and allowed the appeal of the assessee. For the sake of convenience, we extract relevant part of the order of this Tribunal in assessee s own case for the A.Y.2012-13 and 2013-14 which reads as under : 9. We have heard both the parties and perused the material placed on record. This issue is squarely covered by the order of this Tribunal in ITA Nos. 444 445, 449, 450/VIZ/2012. We extract relevant part of the order of this Tribunal which reads as un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... osits made on or after 1st July, 1995) with a cooperative society engaged in carrying on the business of banking. Representations have been received in the Board seeking clarification as to whether a member of a cooperative bank may receive without TDS interest on time deposit made with the cooperative bank on or after 1st July, 1995. The Board has considered the matter and it is clarified that a member of a cooperative bank shall receive interest on both time deposits and deposits other than time deposits with such cooperative bank without TDS under section 194A by virtue of the exemption granted vide clause (v) of sub-section (3) of the said section. The provisions of clause (viia) of the said sub-section are applicable only in case of a non-member depositor of the cooperative bank, who shall receive interest only on deposits other than time deposits made on or after 1st July, 1995 without TDs under section 194A. (emphasis underlined) Thus the circular clarifies that provisions of section 194A(3)(v) would prevail. 5.3. In view of the clarification given in the circular the view taken in the appellate order dtd.22.10.2013 su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d.CIT(A) followed the order of Tribunal, we decide the issue in favour of the assessee and uphold the order of the Ld.CIT(A). The revenue s appeal on this ground is dismissed. The appeal of the revenue for the assessment year 2012-13 and 2013- 14 on this issue is dismissed. 4.2. The amendment to section 194A was expressly provided from the prospective date of 1st June 2015 but not retrospectively. In the instant case the A.Y. involved is 2014-15, hence, the amendment to section 194A has no application in assessee s case. Since the facts are identical and the Ld.CIT(A) followed the order of this Tribunal, we decide the issue in favour of the assessee and uphold the order of the Ld.CIT(A). The revenue s appeal on this ground is dismissed. 5. The second issue in this appeal is related to the amortization of government securities. The AO found that the assessee has deposited a sum of ₹ 23,213/- in the Profit Loss account towards amortization of government securities. The assessee is required to maintain 25% of its demand and time liabilities in the form of liquid assets as per the provisions of section 24 of the Banking Reg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ide in accordance with law. We therefore, set aside the order passed by the Commissioner of Income Tax (Appeals) and direct the Assessing Officer to consider the issue afresh keeping in view of the directions given by the Commissioner of Income Tax (Appeals) for the year under consideration and also following the observations of the Tribunal for the Assessment Year 2008-09 after giving opportunity of hearing to the assessee. This ground of appeal raised by the Revenue is allowed for statistical purpose. 11.1. Following the rule of consistency, the issue is remitted back to the file of the AO with a direction to decide the appeal afresh as per the directions given by the Ld.CIT(A) and also keeping in view of latest direction of the RBI. Accordingly appeal of the revenue on this ground is allowed for statistical purpose. 5.1. Since the facts are identical and the Ld.CIT(A) followed the order of this Tribunal, we find no reason to interfere with the order of the Ld.CIT(A) and uphold the same. The appeal of the revenue on this ground is dismissed. 6. For the AY 2015-16 also the issues involved ..... X X X X Extracts X X X X X X X X Extracts X X X X
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