https://www.taxtmi.com/caselaws?id=403239 For section 194A(3)(v) of the Income-tax Act, the term "member" is to be read in light of the governing State co-operative law where the Act itself does not define it. Under the Karnataka Co-operative Societies Act, a nominal or associate member is included within the statutory concept of "member", and therefore interest paid to associate members falls within the phrase "to a member thereof". The attempt to equate section 194A with section 80P was treated as inapposite, and the CBDT circular relied on for a narrower view was stated to have been quashed. Accordingly, such interest was exempt from tax deduction at source. en-us Mon, 18 Jan 2021 00:00:00 +0530 Thu, 21 Jan 2021 21:15:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=403239 For section 194A(3)(v) of the Income-tax Act, the term "member" is to be read in light of the governing State co-operative law where the Act itself does not define it. Under the Karnataka Co-operative Societies Act, a nominal or associate member is included within the statutory concept of "member", and therefore interest paid to associate members falls within the phrase "to a member thereof". The attempt to equate section 194A with section 80P was treated as inapposite, and the CBDT circular relied on for a narrower view was stated to have been quashed. Accordingly, such interest was exempt from tax deduction at source. Case-Laws Income Tax Mon, 18 Jan 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=403239