J&K Roads Development Agency Exempt from TDS deduction on Term Deposit Interest

CIT Vs Jammu and Kashmir Bank Ltd (Jammu and Kashmir High Court) Introduction: This case involves an appeal filed by the Commissioner of Income Tax (TDS-I), Chandigarh against the order of the Income Tax Appellate Tribunal, Amritsar Bench. The dispute arose when the Assessing Officer noticed that the Jammu and Kashmir Bank Ltd. (the assessee) did not deduct tax at source under Section 194A of the Income Tax Act, 1961, on the interest paid/accrued on Term Deposit Accounts held by the J&K State Rural Roads Development Agency (JKSRRDA) during the assessment year 2009-10. The Assessing Officer...