https://www.taxtmi.com/caselaws?id=390032 Interest paid by a co-operative bank to its members was treated as exempt from TDS under section 194A(3)(v) and section 194A(3)(viia), read with the CBDT clarification, so disallowance under section 40(a)(ia) was not sustainable; the later amendment to section 194A was regarded as prospective and inapplicable to the year in question. The amortization of premium on government securities was also held allowable as a deduction because it arose from statutory liquidity requirements under section 24 of the Banking Regulation Act, 1949, was supported by RBI treatment, and was consistent with the assessee's earlier years' treatment on similar facts. The Revenue's challenge therefore failed on both issues. en-us Wed, 18 Dec 2019 00:00:00 +0530 Sun, 22 Dec 2019 07:45:20 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=390032 Interest paid by a co-operative bank to its members was treated as exempt from TDS under section 194A(3)(v) and section 194A(3)(viia), read with the CBDT clarification, so disallowance under section 40(a)(ia) was not sustainable; the later amendment to section 194A was regarded as prospective and inapplicable to the year in question. The amortization of premium on government securities was also held allowable as a deduction because it arose from statutory liquidity requirements under section 24 of the Banking Regulation Act, 1949, was supported by RBI treatment, and was consistent with the assessee's earlier years' treatment on similar facts. The Revenue's challenge therefore failed on both issues. Case-Laws Income Tax Wed, 18 Dec 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=390032