https://www.taxtmi.com/caselaws?id=215234 The HC held that the circular dated 11.9.2002 issued under section 119 of the Income Tax Act, 1961, which sought to restrict the exemption under clause (v) of sub-section (3) of section 194A for certain members of cooperative societies, was not valid. The court found that the circular could not override the statutory exemption granted by the Act. Petitioners, being cooperative banks, were prejudicially affected by the circular as it imposed TDS obligations on interest payments to some members. The HC ruled that the Board lacked power under section 119 to issue clarifications that effectively withdrew a statutory exemption. Consequently, the circular was declared ineffective, and the decision was in favor of the assessee. en-us Tue, 12 Jun 2012 00:00:00 +0530 Thu, 14 Aug 2025 15:09:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=215234 The HC held that the circular dated 11.9.2002 issued under section 119 of the Income Tax Act, 1961, which sought to restrict the exemption under clause (v) of sub-section (3) of section 194A for certain members of cooperative societies, was not valid. The court found that the circular could not override the statutory exemption granted by the Act. Petitioners, being cooperative banks, were prejudicially affected by the circular as it imposed TDS obligations on interest payments to some members. The HC ruled that the Board lacked power under section 119 to issue clarifications that effectively withdrew a statutory exemption. Consequently, the circular was declared ineffective, and the decision was in favor of the assessee. Case-Laws Income Tax Tue, 12 Jun 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=215234