CITIZENCREDIT CO-OPERATIVE BANK LIMITED (MAHIM BRANCH),MUMBAI vs. ITO (TDS) WARD 1(1)(4), MUMBAI

ITA 6440/MUM/2025Status: DisposedITAT Mumbai19 January 2026AY 2019-2033 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the Co-operative bank was covered by specific provisions of Section 194A(3)(i)(b) and 194A(3)(viia)(b) of the Act, not the general provision of Section 194A(3)(v). Therefore, the assessee was liable to deduct TDS on interest payments.

What were the facts?

The assessee, a multi-state Co-operative bank, failed to deduct TDS on interest paid to other Co-operative societies and a trust. The Assessing Officer treated the assessee as being in default for not deducting tax at source under Section 194A.

What were the issues?

Whether a Co-operative bank is exempt from deducting TDS on interest paid to other Co-operative societies under Section 194A(3)(v) or if specific provisions apply. Whether the assessee was in default for failing to deduct TDS on interest payments.

Which sections of the Income-tax Act were involved?

Section 194A,Section 201(1),Section 201(1A),Section 80P(2)(d)

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Cases cited in this judgment(7)Show list

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ITA Nos.6035 to 6042 & 6385 to 6442/M/2025 Citizen Credit Co-operative Bank Ltd.

2.

The grounds of appeal in ITA No.6038/M/2025 are as under: "ON THE FACTS AND THE CIRCUMSTANCES OF THE CASE, THE LD. ADDL. JCIT(A)-10 DELHI ERRED IN: - 1. confirming the TDS u/s. 201(1) of Rs.4,38,903 & interest u/s. 201(1A) of Rs.3,73,066, aggregating to Rs.8,11,969 u/s. 201(1)/(1A) of I.T. Act, 1961, on the ground that the Appellant had failed to deduct the tax at source u/s. 194A on the interest of Rs.44,07,683 paid by the Appellant to other Co-operative societies (not being members of the Appellant) and one trust. 2. not deciding on the second ground of appeal that in respect of interest payment of Rs.1,61,537 to a trust (included in Rs.44,07,683), the said trust had offered the said interest for taxation in their hands by including the same in the Income Tax Return filed and hence, there was no default in respect of TDS in terms of first proviso to S. 201(1). And hence, TDS u/s. 201(1) of Rs.14,288 & interest u/s 201(1A) of Rs.12,144 was not payable. Further the Appellant had also paid interest u/s 201(1A) of Rs.1,143 on the same. 3. not appreciating the fact that- (a) the Appellant is a Co-opera

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