2015 (4) TMI 374

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....nts no. 1 to 12; Mr. S.B. Pulkundwar, A.G.P for respondent no. 13 JUDGMENT The petitioner impugns the Circular dated 23.10.2003, issued by respondent no.3, thereby directing deduction of tax at source on the deposits. 2.    Mr. Kale, the learned Counsel for the petitioner strenuously contends that the Circular is not in consonance with the provisions of section 194A  of th....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....3) (viia) is misplaced and not in consonance with the rules of interpretation. The leaned Counsel relies on the judgment of the Apex Court in the case of Mathuram Agrawal vs. State of Madhya Pradesh, reported in AIR 2000 SC 109. 3.   Mr. Sharma the learned Asstt. Solicitor General submits that the Commissioner of Income Tax, vide the impugned circular has only clarified the legal positi....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....it of such income to the account of the payee, to deduct income tax thereon at the rats in force. By virtue of sub section (3) of section 194A Exemption is carved out. The Further proviso to section 194 A (3) clarifies the situation as to how the income and the limits of the income as detailed in section 194 (3) is to be construed. 5.   Section 194 A (3) deals with exemptions. It lays d....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....nks which are exempted from deducting TDS. The income accrued on the deposits other than the time deposits made after 1st day of July, 1995 is not exempted from deducting the TDS by urban co-operative Bank. Sub clause  (viia) (a) does not include urban co-operative Bank and sub clause (b) of clause (viia) limits the exemption to deposits other than the time deposits. 6.    It ....