https://www.taxtmi.com/caselaws?id=793121 The proviso inserted in Section 194A(3) of the Income-tax Act, 1961, was upheld as a valid classification because it lawfully limited the tax-deduction exemption for co-operative societies by turnover and interest thresholds, and the challenge based on arbitrariness failed. Co-operative banks were held not to derive their exemption position from the new proviso, since the CBDT explanatory note to the Finance Act, 2015 continued to govern the practical exemption for time deposits credited to co-operative society depositors. No interference was warranted with the clarification protecting transactions covered by interim orders, as those transactions had been acted upon during the pendency of the writ petitions. The appeals were dismissed. en-us Wed, 08 Apr 2026 00:00:00 +0530 Tue, 09 Jun 2026 07:50:16 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=793121 The proviso inserted in Section 194A(3) of the Income-tax Act, 1961, was upheld as a valid classification because it lawfully limited the tax-deduction exemption for co-operative societies by turnover and interest thresholds, and the challenge based on arbitrariness failed. Co-operative banks were held not to derive their exemption position from the new proviso, since the CBDT explanatory note to the Finance Act, 2015 continued to govern the practical exemption for time deposits credited to co-operative society depositors. No interference was warranted with the clarification protecting transactions covered by interim orders, as those transactions had been acted upon during the pendency of the writ petitions. The appeals were dismissed. Case-Laws Income Tax Wed, 08 Apr 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=793121