TaxTMI 
TaxTMI 
2015 (8) TMI 13
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....t have been raised. In the facts of the present case the AO carried out on the spot verification on 26.04.2013 to verify the tax deduct at source under different heads. Vide his order dated 20.05.2013 passed u/s 201(1)/201(1A), he observed that the assessee had not deducted tax on the term deposits. This fact was brought to the notice of the assessee and an explanation was called forth. In response thereto the assessee is found to have stated that it was a Co-operative society engaged in Co-operative business of banking which was registered under Uttarakhand Sahkari Samiti Adhiniyam 2003. It was submitted that Section 2(19) of I.T. Act defines Co-operative society registered as a Co-operative society registered under the Co-operative Societ....
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....e default committed. 3. The said action was challenged unsuccessfully in appeal by the assessee however the action was upheld by the CIT(A). 4. Aggrieved by this the assessee is in appeal before the Tribunal. The ld. AR appearing on behalf of the assessee re-iterated the submissions before the authorities below. Apart from relying on various other orders of the Tribunal referred to in the Paper Book, reliance was also placed on the order dated 14.11.2014 of Pune Bench of the Tribunal in an identically situated case of Cooperative Bank namely Kashipur Urban Cooperative Bank Ltd. vs ITO passed by the Delhi Bench in ITA No.-5329/Del/2013 in the same assessment year (copy of the same placed at pages 1-2 of the Paper Book). Reliance was al....
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....er and the decision of the ITAT SMC Bench in the case of Bhagani Nivedita Sah.Bank Ltd. (cited supra) submitted that in the case of the present case, it may need to be seen whether the members of the Co-operative Banks were the primary members or the secondary members. 6. We have heard the rival submissions and perused the material available on record. On a consideration thereof, we find that as far as the applicability of the relevant provision is considered, the Co-ordinate Bench in the case of Kashipur Urban Co-operative Bank Limited vs. ITO relying upon the decision rendered by the Co-ordinate Bench at Vishakhapatnam in ACIT vs Visakhapatnam Cooperative Bank Ltd. in ITA Nos. 5 & 9/2011 (VIZAG.) Bench has held that the assessee was no....
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.... society. In the instant case, it is the claim of the assessee that all the interest payments have been made only to its members. In that case, the assessee is squarely covered by the exemption provided u/s 194A(3)(v) of the Act. Accordingly we find no reason with the decision of ld. CIT(A) on this issue." 6.1. It is also seen that the Co-ordinate Bench vide its decision dated 30.05.2014 in Bagalkot District Central Co-op. Bank (cited supra) has taken an identical view in the said decision. Wherein the decision of the Pune Bench in Bhagani Nivedita Sah.Bank Ltd. (cited supra) has been taken into consideration. For ready-reference, we extract the relevant portion for the said order which would address the objection of the AO also which ha....
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.... counsel for the assessee has brought to our notice that the ITAT Vishakapatnam Bench in the case of the Asstt. CIT v. Visakhapatnam Co-operative Bank Ltd. [2011] 47 SOT 295/13 taxmann.com 190 has held that co-operative societies carrying on banking business when it pays interest to its members on deposits it need not deduct tax at source in view of the provisions of Sec. 194A(3)(v) of the Act. Similar view has also been expressed by the PlU1e Bench of the IT AT in the case of Asstt. CIT v. Ozer Merchant Co-operative Bank Ltd. [2014] 62 SOT 14/41 taxmann.com 110. We may add that in both these decisions the discussion did not turn on the interpretation of Sec. 194A(3)(i)(b) of the Act vis-a-vis Sec.194A(3)(v) of the Act. It is thus clear tha....