TaxTMI 
TaxTMI 
TaxTMI 
2025 (3) TMI 84
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....t which is hereinafter referred to as the "impugned order". The relevant assessment year is 2016-17 and the corresponding previous year period is from 01/04/2015 to 31/03/2016. 2. At the outset the Registry has pointed out that the above appeals are barred by limitation by 02 days. 3. After considering the condonation application filed by the assessee in all the above appeals, we condone the delay for which sufficient cause is shown, and admit all the appeals for adjudication. Since the issues involved in all the above appeals are common and were heard together so they are being disposed off by this consolidated order. With the consent of both the parties we take up Appeal No. 125/Chd/2020 for A.Y 2016-17 as a lead case. 4. Factual Matr....
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....o its members & other co-operative societies as liable to TDS u/s 194A and consequently erred in upholding ITO(TDS)'s action of levying tax and interest on such cases. 2. The learned CIT(A) failed in appreciating the scheme and logic behind sec. 194A and the correct legal position in this behalf. 3. The exemption provided under section 194A(3)(v) of the Act with regard to deduction of tax at source from interest payment by a cooperative society to another cooperative society existed before the amendment made by the Finance Act 2015 and continued to apply even after the amendment. 4. As per provisions of section 194A(3)(v), Appellant Co-operative Bank is not required to deduct Tax from the payment of interest on time deposit of oth....
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....on of TDS on interest paid by the assessee co-operative bank to other co-operative societies by invoking of section 194A(3)(i)(b) and 194A(3)(viia) And (b) denying the provisions of section 194 A(3)(v). * Non deduction of TDS on interest paid by the assessee co-operative bank to Government run temple. 5.3 It is contended before us that additions are made by invoking section 194A(3)(i)(b) and 194A(3)(viia)(b) and denying the provisions of Section 194A(3)(v). The Ld. CIT(A) in para 5.1.2 (page 9) of the impugned order has stated that "there is no rational for treating the co-operative banks differently from other commercial banks in the matter of deduction of tax and allowing them to avail the exemptions meant for smaller credit co-oper....
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....us and post amended status of 194A(3)(v) it is clear that the following words "such income credited or paid by a co-operative society to any other cooperative society" still falls u/s 194A(3)(v) and therefore the assessee cooperative society was not required to deduct tax u/s 194A on such interest payment to another co-operative society. 5.4 Reliance was placed by AR on the following judgments/orders of ITAT Chandigarh Benches decisions which are as under: (i) Punjab State Cooperative Bank Ltd. Chandigarh Vs. ITO(TDSII) Chandigarh in ITA No. 279/Chd/2016 dt. 01/07/2016 wherein the following was held "Therefore in view of the above discussion it is held that the appellant, a cooperative society is not required to deduct tax from the pay....
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....e society, the decision rendered therein would squarely apply in the present case following which we uphold the order of the CIT (Appeals) in holding that the assessee is not an assessee in default under section 201(1) of the Act and consequently interest under section 201(1A) of the Act also cannot be levied Similar view were held by Hon'ble ITAT Pune bench "A", in case of Abhyudaya Co-op. Bank Ltd VS/ The Income Tax Officer (TDS), 05.04.2018. Thus in view of above submission, we are to submit that as per provisions of section 194A(3)(v), the appellant Co-operative Bank is not required to deduct tax from the payment of interest on time deposit of other being a co-operative society and any demand raised on contrary view needs to be d....
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....e "Members" of Cooperative Bank. Section 194A(3)(v) expressly say that "Income is credited or paid by a cooperative society to any other cooperative society" then such income payment or credit need not be made subject matter of TDS. The other cooperative societies to whom payment is made or amount credited need not be a member of cooperative society so making payment. 6.3 We gainfully refer to the order of ITAT Chandigarh Bench in cases of (1) Punjab State Co-operative Bank Ltd. Chandigarh Vs. ITO (TDS-II) Chandigarh in ITA No. 279/Chd/2016 dated 01/07/2016, (2) Income Tax Officer (TDS-1) Ludhiana Vs. The Ludhiana Central Co-operative Bank ltd. Ludhiana in ITA No. 196/Chd/2016 dt. 29/11/2016 wherein it has been that when assessee being a C....