https://www.taxtmi.com/caselaws?id=255806 The Tribunal held that a co-operative society engaged in banking was not obligated to deduct tax on interest paid to members under Section 194A(3)(v). The disallowance under Section 40(a)(ia) was deemed inapplicable to interest paid to members. The Tribunal clarified that Section 194A(3)(v) applies to all co-operative societies, including those engaged in banking. The CBDT Circular No. 9 of 2002 was upheld, stating that co-operative banks do not need to deduct tax on interest paid to members. The case was remanded to verify if any disallowed interest was paid to non-members, with directions to restrict disallowance to that portion. en-us Fri, 30 May 2014 00:00:00 +0530 Tue, 27 Jan 2015 16:16:15 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=255806 The Tribunal held that a co-operative society engaged in banking was not obligated to deduct tax on interest paid to members under Section 194A(3)(v). The disallowance under Section 40(a)(ia) was deemed inapplicable to interest paid to members. The Tribunal clarified that Section 194A(3)(v) applies to all co-operative societies, including those engaged in banking. The CBDT Circular No. 9 of 2002 was upheld, stating that co-operative banks do not need to deduct tax on interest paid to members. The case was remanded to verify if any disallowed interest was paid to non-members, with directions to restrict disallowance to that portion. Case-Laws Income Tax Fri, 30 May 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=255806