Udaya Souhardha Credit Co-Operative Society Ltd Vs ITO (Karnataka High Court)
Karnataka High Court held that co-operative society registered under Karnataka Souharda Sahakari Act, 1997 is not required to deduct TDS on interest payments made to its members as per provisions of section 194A(3)(v) of the Income Tax Act.
Facts- Vide the present petition, the petitioner mainly seeks the relief that to declare that the petitioner is a co-operative society as per the provisions of the Act and consequently it is not required to deduct tax at source on the interest payments made to its member as per the provisions of section 194A(3)(v) of the Income Tax Act, 1961.
Conclusion- Held that the petitioner society being undisputedly Cooperative Society registered under The Karnataka Souharda Sahakari Act, 1997, the exemption for TDS under Section 194 A (3) V of the IT Act, is clearly admissible in so far as the petitioner society is concerned and consequently the impugned show cause notice is clearly without jurisdiction or authority of law and the same is being illegal and arbitrary, no useful purpose would be served by continuing the service pursuant to the impugned show cause notice.
FULL TEXT OF THE JUDGMENT/ORDER OF KARNATAKA HIGH COURT
