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1 - 10 of 28 (1.05 seconds)The Finance Act, 2018
The Banking Regulation Act, 1949
The Income Tax Act, 1961
Section 3 in The Income Tax Act, 1961 [Entire Act]
Aztec Software And Technology Service ... vs Acit on 12 July, 2007
5.2.4 On going through the provisions of section 194A(3), it is seen that the
Assessing Officer is justified in disallowing the interest payments above the
threshold limit of rs.10,000/- paid to the depositors as the appellant bank had
failed to deduct tax at source thereby rendering itself liable for disallowance
under section 40(a)(ia) of the I.T Act, 1961. The submissions of the appellant
are not acceptable in view of the decision of Hon'ble Pune I.T.A.T. in the case
of Bhagiani Nivedita Sahakari bank Ltd cited supra, wherein, it is clearly held
that section 194A(3)(vii)(b) makes no distinction between members and non-
members of co-operative bank for purpose of deduction of tax at source on
interest on time deposits paid/credited and therefore, co-operative bank
would be liable to deduct tax at source under section 194A(1) on interest on
5 ITA No 358/PNJ/2014-JM
The Belgaum Industrial Co-op Bank Ltd
time deposits paid/credit to its deposits, if such interest amount exceeded the
limit prescribed in proviso to section 194A(3)(i). Further, the Hon'ble Kerala
High Court in the case of Moolamatom Electricity Board Employees Co-op
Bank Ltd 238 ITR 630 has made a clear distinction between primary credit
society and a co-operative society engaged in banking business. Thus, section
194A deals with co-op societies engaged in the business of banking, co-
operative societies engaged in providing credit facilities to the members, etc.
As has been rightly held by the Assessing Officer that the moment the amount
paid/credited to any depositor during the year exceeds rs.10,000, the
provisions of section 194A(1) shall apply and the co-operative society
engaged in the banking business shall have to deduct tax on such payments.
From the facts of the case, it is seen that the Assessing Officer categorically
brought out the material on record to prove that the appellant bank is covered
by the provisions of sub-clause (b) of clause(i) of Sec 194A(3) s well as the
provisions of clause (viia) of Sec 194A(3) which are specific in nature and the
appellant cannot put forth its claim under section 194A(3)(v) which are
general in nature. As the appellant is co-operative society engaged in the
business of banking, it is covered under these specific clauses and as has been
held by the Hon'ble I.T.A.T., Pune Bench, Pune in Bhagani Nivedita Sahakari
bnk Ltd v. ACIT (2003 87 ITD 569 that the term ‗co-op society' in sub-clause