Sponsored
    Follow Us:

Case Law Details

Case Name : Mandheshwari Urban Development Co-op. Bank Ltd. Vs ACIT (ITAT Pune)
Appeal Number : ITA No. 1153/PUN/2018
Date of Judgement/Order : 18/07/2022
Related Assessment Year : 2013-14
Become a Premium member to Download. If you are already a Premium member, Login here to access.
Sponsored

Mandheshwari Urban Development Co-op. Bank Ltd. Vs ACIT (ITAT Pune)

issue in the present appeal relates to whether a nominal member, who is not a registered member of the society, can be treated as a member of the cooperative society whether the exemption is available under clause (v) of sub-section (3) of section 194A of the Act. There is no dispute as to the fact that the above categories of persons mentioned above are nominal members of the societies as per bye-laws of the appellant society. The provisions of Maharashtra Cooperative Societies Act also permit admission of such nominal members. The term “member” has been defined by the Maharashtra Cooperative Societies Act to include a nominal members.

ITAT held that we do not see any reason as to why the exemption under clause (v) of sub-section (3) of section 194A of the Act cannot be given in the case of members referred to above. Therefore, the reasoning of the lower authorities cannot be appreciated in the eyes of law. Accordingly, the orders of the lower authorities are hereby reversed and direct the Assessing Officer to delete the addition made u/s 40(a)(ia) of the Act for non-deduction of TDS on interest paid on deposit received from the nominal members of the society.

ITAT followed Supreme Court Judgment in the case of Mavilayi Service Co-operative Bank Ltd. vs. CIT, 431 ITR 1 (SC).

FULL TEXT OF THE ORDER OF ITAT PUNE

Please become a Premium member. If you are already a Premium member, login here to access the full content.

Sponsored

Join Taxguru’s Network for Latest updates on Income Tax, GST, Company Law, Corporate Laws and other related subjects.

One Comment

  1. Namrata Bhat says:

    Under Sec 80TTB, as a senior citizen, I am allowed deduction of interest income paid by banks including cooperative banks of Rs 50000 when the interest received from such banks exceeds Rs 50000. A large private bank does not deduct Tax till my interest income exceeds Rs 50000 ( around October or so ). But a cooperative bank deducts Tax at source right from April itself. I have Rs 10 lacs worth FDs in this bank but may go in for premature encashment in which case the taxable interest income will be lower than Rs 50000. Is the cooperative bank right in estimating my interest income for the full fiscal based on the FDs I currently hold and deducting tax at source based on such estimation?

    Regards

    Namrata Bhat

Leave a Comment

Your email address will not be published. Required fields are marked *

Sponsored
Sponsored
Search Post by Date
July 2024
M T W T F S S
1234567
891011121314
15161718192021
22232425262728
293031