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IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 29TH DAY OF JANUARY, 2016
PRESENT
THE HON'BLE MR. JUSTICE N.K. PATIL
AND
THE HON’BLE MRS. JUSTICE S.SUJATHA
ITA No. 634/2015 BETWEEN
The Commissioner of Income-tax, TDS 55/1, Shilpashree Vidhyaranya Complex Vishveshwaranagar Mysore-570 008.
The Income-tax Officer,
TDS Ward
55/1, Shilpashree
Vidhyaranya Complex
Vishveshwaranagar
Mysore-570 08. ….Appellants (By Sri. K.V.Aravind, Advocate)
AND
M/s. Mysore Merchant Co-Operative Bank Ltd., Jaganmohan Palace Road Mysore. PAN:BLRTO 3050F. …Respondent
This Appeal is filed under Section 260-A of Income-tax Act 1961, to set aside the order passed by the ITAT, Bangalore in ITA No.86/Bang/2015 dated 29.06.2015 confirming the order of the Appellate Commissioner and confirming the order passed by the Income Tax Officer, TDS Ward, Mysore.
This Appeal coming on for Admission, this day, N. K. Patil, J., delivered the following:
JUDGMENT
This appeal by the Revenue is directed against the impugned Order dated 29.06.2015 passed in ITA No.86/Bang/2015 on the file of the Income Tax Appellate Tribunal, Bangalore, confirming the order of the Appellate Commissioner confirming the order of the Income Tax Officer, TDS Ward, Mysore, to consider the following substantial questions of law.
“1. Whether the Tribunal was correct in relying on a circular No.9/2002 when the same was quashed by the Hon’ble Mumbai High Court and will a circular become a legal document merely for the reason that it was not withdrawn by the issuing authority?.
Whether the Tribunal was correct in concluding that the cooperative banks were never required to deduct tax on the interest paid to its members on the ground that they were exempt under Section 194A(3)(v) of the Income Tax Act, 1961?.
Whether the Tribunal is correct in overlooking the established principle of “Generalia specialibus non derogant” vis a vis the
special provisions of Section 194A(3)(viia)(b) and general provisions of Section 194A(3)(v) of the Income-tax Act, 1961?.
Whether the provisions of section 194A(3)(v) of the Act are applicable to nominal member or sympathizer member also or the provisions will apply only to such members who hold shares and have right to vote in general body meeting and entitled to share of profit is of the co-operative society, keeping in view of circular No.9 of 2002 issued by the CBDT?.
Whether in respect of interest paid on time deposit is by a Co-operative society engaged in the business of banking, the clause(v) which deals with Co-operative Societies will apply or clause (viia) which mentions specifically ‘a co- operative society engaged in the business of banking finds application and is 194A(3)(v) applicable?.”
We have heard the learned Counsel for the Appellants.
Learned Counsel for the appellants submitted that the instant appeal may be dismissed as withdrawn reserving liberty to the appellants to file an appeal on the
same cause of action after incorporating necessary questions of law for consideration.
Submission of the learned Counsel for the appellants is placed on record.
The appeal is dismissed as withdrawn reserving liberty to the appellants to file an appeal on the same cause of action incorporating additional substantial questions of law, within two weeks from the date of receipt of copy of this Judgment. Ordered accordingly.
Sd/- JUDGE
Sd/- JUDGE
AN/-