DISTRICT COOPERATIVE BANK LIMITED, BARABANKI,BARABANKI vs. DCIT-3, LUCKNOW

ITA 267/LKW/2025Status: DisposedITAT Lucknow31 August 2026AY 2012-20139 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The tribunal held that the assessee was not liable to deduct TDS on contributions made to UPCU as it was not directly paying salaries to the deputed staff, and there was no evidence of markup. The issue of interest on late TDS deposit was remanded to the CIT(A) for further determination.

What were the facts?

The assessee bank made payments to the Uttar Pradesh Cooperative Union (UPCU) for supervisory staff deputed to the bank. The Assessing Officer disallowed these payments for non-deduction of TDS, and the CIT(A) upheld the disallowance for a portion of the payment. The assessee also faced disallowance for late TDS deposit.

What were the issues?

Whether the assessee was liable to deduct TDS on payments made to UPCU for deputed staff, and whether interest on late TDS deposit is a compensatory payment.

Which sections of the Income-tax Act were involved?

Section 40(a)(ia),Section 201(1A)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, LUCKNOW ‘B’ BENCH, LUCKNOW

Hearing: 08.06.2026Pronounced: 31.08.2026

PER NIKHIL CHOUDHARY, A.M.: This is an appeal filed by the assessee, against the order of the ld. CIT(A)-2, Lucknow, wherein the ld. CIT(A), vide his order dated 7.02.2025 has partly allowed the appeal of the assessee against the order passed by the ld. Assessing Officer for the A.Y. 2012-13, under section 143(3) of the Income Tax Act, 1961 on 30.03.2015. The grounds of appeal are as under:- “1. The Learned Commissioner of Income Tax (Appeals), NFAC, Delhi [hereinafter referred to as the "Ld. CIT(A)"] has erred on facts and in law in confirming the addition of Rs. 17,18,461/-without appreciating the merit of the submissions made by the assessee.

2.

The Ld. CIT(A) has erred on facts and in law in confirming the addition of Rs.8,685

The order continues below.

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