2008 (8) TMI 128

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....inancial years, these appeals are being decided by this common order. Survey was conducted at the business premises of assessee respondent on 05.03.2002, and it was noticed  that TDS was not deducted on interest paid on TDR/STDR, and TDS was not deducted on rent paid for the office building to four co-owners for the year 2000-01 and 2001-02, and thus levied tax and interest.  On appeal, learned CIT(A), vide order dated 04.04.2003, partly accepted the appeals but confirmed the order of assessing authority pertaining to the liability to deduct tax on TDR/STDR and rent.   Learned ITAT, by the impugned order, accepted appeals of assessee and set aside the demand raised by Assessing Officer on account of aforesaid liability....

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....ions of Sec.10(15)(fa), the interest income was exempt from taxable income and share of co-owners in rented premises was definite, thus, learned ITAT has not committed any error in accepting the appeals, hence the present appeals are liable to be dismissed. Learned counsel for the appellant submitted that Sec.10(15)(fa) is not applicable in this case.  Sec.10(15)(fa), reads as under: (fa)by a scheduled bank to a non-resident or to a person who is not ordinarily resident within the meaning of sub-section (6) of section 6 on deposits in foreign currency where the acceptance of such deposits by the bank is approved by the Reserve Bank of India.               This provis....