Dependent Agent PE unresolved for lack of factual inquiry; arm's-length distribution accepted; royalty claim rejected; 15% refund interest (Section 24...
Exemption under s.10(23C)(iiiad) upheld; appeal allowed, interest and dividends excluded from annual receipts, disallowance deleted, capital gains exe...
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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