2012 (8) TMI 964

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....oss Account at Rs. 2,00,000/- on which no TDS is made. 2. Whether on the facts and in the circumstances of the case the Ld.CIT(A) was justified in deleting the addition made by the A.O. on account of interest on P.F. account at Rs. 19,23,945/- upholding the contention of the assessee that the interest was credited to the Staff Provident Fund account on account payable on P.F. account of the employees maintained separately for which the deduction has been claimed, ignoring the provisions of section 36(1)(iv) and 36(1)(va) of the Act. 2. The assessee is a cooperative bank. It has filed return of income declaring income of Rs. 1,17,02,501/- on 31.10.2007. The cooperative banks have been brought to in taxable net by insertion of sub....

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....s of the person liable to pay sum, such crediting shall be deemed to be the credit of such sum to the account of payee." 4. At both the places, word used is 'payee' personally and not by designation. In this case, as per accounting system of assessee, the person and the sum amount are known later on. The deduction also requires some formalities to be completed like PAN, Name and address and place of payee, exact amount paid, etc. So there cannot be any TDS in case of 'Provision' especially when details of payee and exact amount are not known. Further, from the copy of the appointment letter of Auditor issued by the Cooperative Department for F.Y. 2006-07, relevant to A.Y. 2007-08, appointment letter was issued on 16.05.2007 and was recei....

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....t of interest of PF account of Rs. 19,22,945/- which was credited to the Staff PF account as account of interest payable as of PF Accounts of employees maintained separately for which deduction has been claimed ignoring the provisions of section 36(1)(iv) and 36(1)(va) of the Act. On the other hand, the Ld. Authorised Representative supported the order of the CIT(A). 6. After going through the above submissions and material on record, we find that the interest paid on Rs. 19,23,945/- was credited to the respective accounts of the employees which shows that assessee had no control over the fund. The interest received from Fixed Deposit account was credited to the interest receivable account and hence was reflected in the income returned. ....