DARJEELING DISTRICT CENTRAL CO-OPERATIVE BANK LTD. ,DARJEELING vs. ACIT(OSD)(TDS),WD-5(3),DARJEELING, DARJEELING.

ITA 766/KOL/2023Status: DisposedITAT Kolkata26 June 2024AY 2016-17Bench: SHRI SANJAY GARG (Judicial Member), SHRI RAKESH MISHRA (Accountant Member)12 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the assessee was not liable to deduct TDS on interest paid to its members, who are cooperative societies, based on paragraph 42.7 of Circular No. 19 of 2015. Consequently, the demands and disallowances were deleted.

What were the facts?

The assessee, a cooperative bank, paid interest to its members, who are cooperative societies. The Assessing Officer (AO) initiated proceedings for non-deduction of TDS under Section 194A, leading to demands for tax and interest, and disallowance of expenses under Section 40(a)(ia). The CIT(A) confirmed these actions.

What were the issues?

Whether a cooperative bank is required to deduct TDS on interest paid to its members, who are cooperative societies, and the consequential implications for disallowance of expenses.

Which sections of the Income-tax Act were involved?

Section 194A,Section 201(1),Section 201(1A),Section 40(a)(ia)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “C” BENCH KOLKATA

Before: SHRI SANJAY GARG & SHRI RAKESH MISHRA

For Appellant: Shri N. C. Mondal, CA
For Respondent: Shri Sailen Samadder, Addl. CIT, Sr. DR
Hearing: 05.06.2024Pronounced: 26.06.2024

PER RAKESH MISHRA, ACCOUNTANT MEMBER:

These three appeals having filed by the assessee are against the separate orders of Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi (hereinafter referred to as “the Ld. CIT(A)” passed u/s. 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) dated 10.06.2023, details of which are as under:

Sl. ITA No. & Asstt. Year Date of order of Section or the Act under No. the Ld. CIT(A) which the order of the AO was passed & the Date of the order 1. 766/K

The order continues below.

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