Opportunity to furnish unsecured-loan confirmations is required before reassessment initiation; proceedings require fresh consideration after taxpayer...
Under-reporting on a first reassessment return attracts penalty, while enhanced misreporting penalty requires proof of a statutory misreporting catego...
The ITAT held that the assessee, a cooperative credit society (not an RBI-licensed bank), was not obliged to deduct tax at source under s.194A(3)(v) on interest paid to members for A.Y. 2014-15 and therefore could not be treated as an "assessee in default" under s.201(1). The Tribunal further concluded that no interest under s.201(1A) was exigible. Even accepting, arguendo, the lower authorities' treatment of the society as a bank, no statutory duty to effect TDS on members' time deposit interest arose prior to 1 June 2015. Consequently, initiation of penalty proceedings under s.271C was held to be erroneous.
The ITAT held that the assessee, a cooperative credit society (not an RBI-licensed bank), was not obliged to deduct tax at source under s.194A(3)(v) on interest paid to members for A.Y. 2014-15 and therefore could not be treated as an "assessee in default" under s.201(1). The Tribunal further concluded that no interest under s.201(1A) was exigible. Even accepting, arguendo, the lower authorities' treatment of the society as a bank, no statutory duty to effect TDS on members' time deposit interest arose prior to 1 June 2015. Consequently, initiation of penalty proceedings under s.271C was held to be erroneous.
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TaxTMI 
TaxTMI 
of 4915 
