MARATHA CO-OOPERATIVE BANK LTD., vs. THE COMMISSIONER OF INCOME TAX

: 1 : IN THE HIGH COURT OF KARNATAKA DHARWAD BENCH ON THE 19TH DAY OF JANUARY, 2017 BEFORE THE HON’BLE MR.JUSTICE RAVI MALIMATH AND THE HON’BLE MR.JUSTICE K.SOMASHEKAR ITA NO.100108 OF 2015 BETWEEN MARATHA CO-OPERATIVE BANK LTD., 1477, BASVAN GALLI, BELAGAVI REP. BY ITS CHAIRMAN SHRI DEEPAK ARJUNRAO DALVI AGE: 73 YEARS, OCC: BUSINESS R/O. TILAKWADI, BELAGAVI ... APPELLANT (BY SRI. SANGRAM S KULKARNI, ADV.) AND 1. THE COMMISSIONER OF INCOME TAX (APPEALS) KHIMJIBHAI COMMERCIAL COMPLEX, OPP. CIVIL HOSPITAL, BELGAUM 2. INCOME TAX OFFICER, TDS WARD, BELGAUM, KHIMJIBHAI COMMERCIAL COMPLEX, OPP: CIVIL HOSPITAL, BELGAUM ... RESPONDENTS (BY SRI.Y.V.RAVIRAJ, ADV.) THIS ITA IS FILED UNDER SECTION 260A OF THE INCOME TAX ACT, 1961 PRAYING TO ALLOW THE APPEAL IN ENTIRETY AND SET ASIDE THE ORDER DATED 20.03.2015

: 2 : PASSED BY THE INCOME TAX APPELLATE TRIBUNAL, PANAJI IN ITA NO.435/PNJ/2014. THIS ITA COMING ON FOR ADMISSION THIS DAY, RAVI MALIMATH J., DELIVERED THE FOLLOWING: JUDGMENT The assessee has filed this appeal by raising various substantial questions of law and in particular 3 and 5: “3. Whether the Tribunal was justified in law in not holding the appellant was entitled for benefit of Section 194A(3)(V) of the Act in view of the circular No.9/2002 dated 11.09.2002 on the facts and circumstances of the case? 5. Whether the respondents committed error by not extending the benefit of the clarification given by the CBDT regarding applicability of TDS liability to Co- operative Banks with effect from 01.06.2015?” 2. Sri. Y.V.Raviraj, learned counsel appearing for the respondents submits that in an identical circumstance, the Division Bench of this Court in its judgment dated 16.12.2015 passed in ITA Nos.100047 of 2015 and 100048-49 of 2015 held that the finding of the Tribunal that the Co-operatives Banks were required to deduct tax at source is unsustainable. Consequently,

: 3 : the appeals were allowed. Hence, it is pleaded that the present appeal be disposed off by following the said order. 3. On hearing learned counsels, we are of the considered view that the facts and the questions of law that arise for consideration in the appeal are identical to the one disposed off in the aforesaid order. Consequently, following the aforesaid judgment the finding of the Tribunal that the Co-operative Banks are required to deduct tax source is unsustainable. As a result, the appeal filed by the assessee stands allowed. Sd/- JUDGE Sd/- JUDGE Rsh