2021 (3) TMI 781

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....th regard to accrued interest on standard assets without appreciating the submission of the Appellant. 3. The ld.CIT(A) erred in confirming the addition of Rs. 1,03,98,959/- towards interest paid to its members in excess of Rs. 10000/- without appreciating the submissions of the appellant." I shall adjudicate the above issues as under: Addition of Rs. 9,99,439 (Ground No.2) 3. The Assessing Officer has made the above addition by observing as under:- "5.1 It is seen from the balance sheet of the assessee bank that Rs. 66,24,000/- is shown as loan interest receivable on both the sides of balance sheet. The authorized representative was asked to comment on the same. In response, the AR has stated that, depending on the performance of....

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....tent of Rs. 9,90,000 is on standard assets and not on nonperforming assets (NPA's). Therefore, I see no reason to interfere with the orders of the Income Tax Authorities and I confirm the addition. It is ordered accordingly. 3.5 In the result, Ground No.2 is dismissed. Addition of Rs. 1,03,98,959 (Ground No.3) 4. The above ground is regarding disallowance of Rs. 1,03,98,959 by invoking the provisions of section 40(a)(ia) of the I.T.Act on account of failure on the part of the assessee to deduct tax at source with regard to interest payment to the assessee's members and cooperative societies. The assessee contended that it is not liable for TDS since interest was paid to its members and other cooperative societies. Therefore, by virtue o....

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....er Rs. 10,000/- or more is paid by the assessee to its member or not and therefore in the considered opinion of the bench the other provision relied upon by the Ld. DR i.e., 194A(3)(i)(b) shall not beapplicable being general in nature. It is settled proposition of law that the specific provision {i.e 194A(3)(v)} , shall override the general provision, { i.e 194A(3)(i) (b)} , in case of over lapping or conflict , hence the section 194A(3)(v)} is applicable to the facts of the present case . Therefore the contention of ld DR is not correct. Further the case is also covered in favour of assessee by the decision of the coordinate bench in the matter of Vasavamba Cooperative Bank Ltd (supra), further there is no reason for this bench to take a c....