TaxTMI 
TaxTMI 
2016 (6) TMI 1118
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....' vis-à-vis the specific provisions of sec.194A(3)(viia)(b) and general provisions of 194A(3)(v) of the Act? 4. Whether the Tribunal was correct in not appreciating the fact that the provision of section 194A(3)(v) is a general provision granting benefit to all co-operative societies, whereas, the provisions of section 194A(3)(i)(b) deals with co-operative society carrying on the business of banking, hence specific provisions in any case overrides the general provisions?" 2. We have heard Mr.Aravind K.V., learned counsel appearing for the appellants. As such, if we see the observations of the Tribunal in this regard, the considerations are at paragraphs 12 to 14 which read as under: "12. We have heard the rival submissions. At the time of hearing of the appeal, it was brought to our notice by the learned counsel for the assessee that the Bangalore Bench of ITAT in the case of Bagalkot District Central Co-op Bank, Vs JCIT (2014) 48 taxmann.com 117(Bangalore-Trib) held that Co-Operative Societies carrying on banking business while paying interest to members on time deposit and deposits other than time deposits need not deduct tax at source U/s 194-A of the Act by virt....
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....Pune ITAT SMC in the case of Bhagani Nivedita Sahakari Bank Ltd(supra) when it says that co- operative society as mentioned in CL.(v) is a general species, whereas the other five categories of co-operative societies which are specifically refered to in other provisions are specific co- operative societies. The further conclusion in the said decision that the term 'co-operative society' in CL.(v) of S.194A(3) as to be interpreted as co-operative society other than co-operative bank, is again unsustainable. The law is well settled that by a process of interpretation one cannot add on words that are not found in the text of the statute. Such a course is permitted only when there is "causes omisus". We do not think that the provisions of Sec.194A(3)(v) suffers from any causes omisus as has been interpreted by the ITAT Pune Bench SMC. 16. We are also of the view that the decision of the Hon'ble Kerala High Court in the case of Moolamattom Electricity Board Employees Co-op Bank Ltd(supra) supports the plea of the Assessee before us. The petitioners in that case were primary credit societies registered under the Kerala Co-operative Societies Act. In view of the specific provisions of S....
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....y, 1995) with a co-operative society engaged in carrying on the business of banking. 2. Representations have been received in the Board seeking clarification as to whether a member of a co-operative bank may receive without TDS interest on time deposit made with the co-operative bank on or after 1st July, 1995. The Board has considered the matter and it is clarified that a member of a co- operative bank shall receive interest on both time deposits and deposits other than time deposits with such co-operative bank without TDS Under Section 194A by virtue of exemption granted vide clause (v) of Sub Section (3) of the said section. The provisions of clause (viia) of the said Sub Section are applicable only in case of a non- member depositor of the co- operative bank, who shall receive interest only on deposits other than time deposits made on or after 1st July, 1995 without TDS Under Section 194A. 3. A question has also been raised as to whether normal members, associate members and sympathizer members are also covered by the exemptions Under Section 194A(3)(v). It is hereby clarified that the exemption is available only to such members who have joined in application for the regi....
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....otice that the ITAT Vishakapatnam Bench in the case of The Vishakapatnam Co-operative Bank ITA No.5 and 19 of 2011 order dated: 29.08.2011 as 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 Pune Bench of the ITAT in the case of Ozer Merchant Co-operative Bank ITA No.1588/PN/2012 order dated 30.10.2013. 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-à- vis Sec.194A(3)(v) of the Act. It is thus clear that the preponderance of judicial opinion on this issue is that co-operative societies carrying on banking business when it pays interest to its members on deposits need not deduct tax at source in view of the provisions of Sec.194A(3)(v) of the Act. 21. For the reasons given above, we hold that the Assessee which is a co-operative society carrying on banking business when it pays interest income to a member both on time deposits and on deposits other than the deposits with such co-operative society need no....