The Income Tax Officer, TDS Ward-1, Panaji., Panaji V. M/s The Goa State Co-op. Bank Ltd. Patradevi Branch., Goa

ITA 394/PAN/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 3052 (ITAT-PANAJI)
• Duration Of Justice: 2 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-01-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2013-2014
• Appeal Filed On: 26-10-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRASHANT GADEKAR LD
• Assessee Lawyers: VENKATESH J SHENAI
• Keywords: Question of law

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PANAJI BENCH, PANAJI BEFORE SHRI NARENDRA S. SAINI , HONBLE ACCOUNTANT MEMBER AND SHRI GEORGE MATHAN , HONBLE JUDICIAL MEMBER ITA NO S . 3 81 TO 411 /PNJ/2015 : (ASST. Y R S : 2013 - 14 ) INCOME TAX OFFICER (TDS), WARD - 1, PANAJI. ( APPELLANT) VS. ( 1 ) . M/S GOA STATE CO - OPERATIVE BANK LTD., MOIRA BRANCH, GURUGAURI APPTS, BAMBORDEM, MOIRA. ( 2 ) . M/S GOA STATE CO - OPERATIVE BANK LTD., BHIMPORE BRANCH, DEVI KADALIYA, BHIMPORE, DAMAN, DAMAN & DIU - GOA. ( 3 ) . M/S GOA STATE CO - OPERATIVE BANK LTD.,GAWANE BRANCH, VKS SOCIETY, GAWANE, SATTARI - GOA. ( 4 ) . M/S GOA STATE CO - OPERATIVE BANK LTD.,VANAKBARA BRANCH, MAIN ROAD, VANAKBARA DIU, DAMAN & DIU - GOA. ( 5 ) . M/S GOA STATE CO - OPERATIVE BANK LTD., KERI BRANCH, JAYBHARAT VKSS SOCIETY BLDG, KERI PONDA - GOA. ( 6 ) . M/S GOA STATE CO - OPERATIVE BANK LTD., MERCES BRANCH, INDIRA APPTS , GAUNCHE BHATT, MERCES, GOA. ( 7 ) . M/S GOA STATE CO - OPERATIVE BANK LTD., KTC BRA NC H, KTC BUS STAND, PANAJI - GOA. ( 8 ) . M/S GOA STATE CO - OPERATIVE B ANK LTD., CURTI PONDA BRANCH, PONDA - GOA. ( 9 ) . M/S GOA STATE CO - OPERATIVE BANK LTD., SHIRODA BRANCH, KAMAXI SCHOOL, SHIRODA,PONDA - GOA. 2 ITA NOS. 381 TO 411 /PNJ/2015 (ASST. YRS: 2013 - 14) ( 10 ) . M/S GOA STATE CO - OPERATIVE BANK LTD., ADPAI DURBHAT BRANCH, SHAKAR GRAHA, ADPAI, DURBHAT, PONDA - GOA. ( 11 ) . M/S GOA STATE CO - OPERATIVE BANK LTD., VEREM BRANCH, MANSHER, VEREM BARDEZ GOA. ( 12 ) . M/S GOA STATE CO - OPERATIVE BANK LTD., KORGAO BRANCH, DEULWADA , KORGAO PERNEM - GOA. ( 13 ) . M/S GOA STATE CO - OPERATIVE BANK LTD., MANDREM BRANCH, MANDREM , PER NE M - GOA. (14) . M/S GOA STATE CO - OPERATIVE BANK LTD., PATRADEVI BRANCH, PATRADEVI, TORSE, PEDNE - GOA. ( 1 5 ) . M/S GOA STATE CO - OPERATIVE BANK LTD., THANE CORTAIN BRANCH, PAXA BLDG, ALMA BHAT, THANE CORTAIN GOA. ( 1 6 ) . M/S GOA STATE CO - OPERATIVE BANK LTD., MAPUSA MARKET BRANCH, KHALAP BLDG, MAPUSA MARKET, MAPUSA GOA. ( 1 7 ) . M/S GOA STATE CO - OPERATIVE BANK LTD., SOMANATH BRANCH, SOMANATH DAMAN, DAMAN & DIV - GOA. ( 1 8 ) . M/S GOA STATE CO - OPERATIVE BANK LTD., FUDAM BRANCH, GANGESHWAR ROAD, FUDAM DIU, DAMAN & DIU - GOA. ( 1 9 ) . M/S GOA STATE CO - OPERATIVE BANK LTD., NAGZAR BRANCH NAGAR, PERNEM - GOA. 3 ITA NOS. 381 TO 411 /PNJ/2015 (ASST. YRS: 2013 - 14) ( 20 ) . M/S GOA STATE CO - OPERATIVE BANK LTD., KACHIGAM BRANCH, SABIR COMPLEX, ZARI CASWAY ROAD, KACHIGAM, NANI DAMAN, DAMAN & DIU - GOA. ( 2 1 ) . M/S GOA STATE CO - OPERATIVE BANK LTD., PONDA BRANCH, PADMAKAR COMPLEX, SADAR , PONDA - GOA. ( 2 2 ) . M/S GOA STATE CO - OPERATIVE BANK LTD., BETORA BRANCH , MARKET YARD BETORA, PONDA - GOA. ( 2 3 ) . M/S GOA STATE CO - OPERATIVE BANK LTD., TISK - USGAO BRANCH, GOVIND BUILDING, TISK - USGAO - GOA. ( 2 4 ) . M/S GOA STATE CO - OPERATIVE BANK LTD., CARANZALEM BRANCH, BHASHYAM CHAMBERS, OPP. ADARESH COLONY, CARANZALEM - GOA. ( 2 5 ) . M/S GOA STATE CO - OPERATIVE BANK LTD., DAYANAND NAGAR BRANCH, SANJIVANI SUGAR FACTORY, DAYANAND NAGAR, TISK - GOA. ( 2 6 ) . M/S GOA STATE CO - OPERATIVE BANK LTD., PIRNA BRANCH, VILLAGE PANCHAYAT , PIRNA, BARDEZ - GOA. ( 2 7 ) . M/S GOA STATE CO - OPERATIVE BANK LTD., IDC BRANCH, IDC OFFICE, DATTAWADI MAPUSA - GOA. ( 2 8 ) . M/S GOA STATE CO - OPERATIVE BANK LTD., TALEIGAO BRANCH, PRAGATH HOME, CARDOZWADA - GOA. ( 29 ) . M/S GOA STATE CO - OPERATIVE BANK 4 ITA NOS. 381 TO 411 /PNJ/2015 (ASST. YRS: 2013 - 14) LTD., PARYEM BRANCH, MAIJIKWADA, PORIEM, SATTARI - GOA. ( 3 0 ) . M/S GOA STATE CO - OPERATIVE BANK LTD., AMONA BRANCH, NR. VILLAGE PANCHAYAT AMONA, SATTARI - GOA. ( 3 1 ) . M/S GOA STATE CO - OPERATIVE BANK LTD., HONDA BRANCH, SHOP NO.6, PANCHAYAT BLDG, HONDA, SATTARI - GOA. PAN : AAAAT3364R. (RESPONDENT) A PPELLANT BY : SHRI PRASHANT GADEKAR, LD. DR. RE SPONDENT BY : SHRI VENKATESH J. SHENAI, CA. D ATE OF HEARING : 1 3 / 0 1 /201 6 DATE OF ORDER : 1 3 / 0 1 /201 6 O R D E R PER GEORGE MATHAN : THESE ARE APPEALS FILED BY THE REVENUE AGAINST THE ORDER OF THE CIT(A), PANAJI - 1 IN THE CASE OF VARIOUS BRANCHES OF GOA STATE CO - OPERATIVE BANK LTD. 2. SHRI PRASHANT GADEKAR, LD. DR REPRESENTED ON BEHALF OF THE REVENUE AND SHRI VENKATESH J. SHENAI , C.A, REPRESENTED ON BEHALF OF THE ASSESSEE. 3 . IT WAS FAIRLY AGREED BY BOTH THE SIDES THAT THE ISSUE INVOLVED IN ALL THE APPEALS ARE AGAINST THE ACTION OF THE LD.CIT(A) IN HOLDING THAT THE PROVISIONS OF SECTION 194 A(3)(V) WAS APPLICABLE TO THE DEPOSITS MADE WITH THE ASSESSEES , CO - OPERATIVE BANK. IT WAS ALSO FAIRLY AGREED THAT THE ISSUE WAS 5 ITA NOS. 381 TO 411 /PNJ/2015 (ASST. YRS: 2013 - 14) SQUARELY COVERED BY THE DECISION OF THE KARNATAKA HIGH COURT OF DHARWAD BENCH IN THE CASE OF THE BAILHONGAL URBAN CO - OPERATIVE BANK LTD IN ITA NO. 100001 OF 2014 VIDE ITS ORDER DATED 16.12.2015, WHEREIN IT HAS BEEN HELD AS FOLLOWS : - IN THIS APPEAL BY THE ASSESSEE, THE INCOME TAX APPELLATE TRIBUNAL HAS HELD THAT TAX HAD TO BE DEDUCTED BY THE ASSESSEE CO - OPERATIVE BANK IN RESPECT OF THE INTEREST ON TIME DEPOSITS PAID TO ITS MEMBERS UNDER SECTION 194A OF THE ACT. 2. THE MINISTRY OF FINANCE, GOVERNMENT OF INDIA VIDE CIRCULAR NO.19/2015 IN F. NO. 142/14/2015 - TPL, HAS CLARIFIED THAT THE CO - OPERATIVE BA NKS NEED NOT DEDUCT TAX AT SOURCE UNDER SECTION 194A OF THE ACT. THE RELEVANT PORTION AT 42.5 READS AS FOLLOWS : 42.5 IN VIEW OF THIS, THE PROVISIONS OF THE SECTION 194A(3)(V) OF THE INCOME - TAX ACT HAVE BEEN AMENDED SO AS TO EXPRESSLY PROVIDE THAT THE EX EMPTION PROVIDED FROM DEDUCTION OF TAX FROM PAYMENT OF INTEREST TO MEMBERS BY A CO - OPERATIVE SOCIETY UNDER SECTION 194A(3)(V) OF THE INCOME - TAX ACT SHALL NOT APPLY TO THE PAYMENT OF INTEREST ON TIME DEPOSITS BY THE CO - OPERATIVE BANKS TO ITS MEMBERS. AS THI S AMENDMENT IS EFFECTIVE FROM THE PROSPECTIVE DATE OF 1 ST JUNE, 2015, THE CO - OPERATIVE BANK SHALL BE REQUIRED TO DEDUCT TAX FROM THE PAYMENT OF INTEREST ON TIME DEPOSITS OF ITS MEMBERS, ON OR AFTER THE 1 ST JUNE, 2015. HENCE, A CO - OPERATIVE BANK WAS NOT REQUIRED TO DEDUCT TAX FROM THE PAYMENT OF INTEREST ON TIME DEPOSITS OF ITS MEMBERS PAID OR CREDITED BEFORE 1 ST JUNE, 2015. 3. IN THE LIGHT OF THE AFORESAID CIRCULAR, THE VIEW OF THE TRIBUNAL HOLDING THAT CO - OPERATIVE BANK WAS REQUIRED TO DED UCT TAX IS NOT SUSTAINABLE. HENCE, THIS APPEAL MERITS CONSIDERATION. 4. IN THE RESULT, THE APPEAL STANDS ALLOWED. THE SUBSTANTIAL QUESTION OF LAW RAISED BY THE ASSESSEE IS ANSWERED IN ITS FAVOUR. THE JUDGEMENT OF THE TRIBUNAL IN ITA NO.85/PNJ/2013 IS SET ASIDE. NO COSTS. 4. AS IT IS NOTICED THAT THE ISSUE FOR ALL THESE APPEALS ARE SQUARELY COVERED BY THE DECISION OF THE HON'BLE KARNATAKA HIGH COURT, DHARWAD B E N CH 6 ITA NOS. 381 TO 411 /PNJ/2015 (ASST. YRS: 2013 - 14) AS ALSO THE DECISION OF THE CO - ORDINATE BENCH OF THIS TRIBUNAL IN ITA NO. 123 TO 137/PNJ/2015 DATED 19.06.2015 IN THE CASE OF OTHER BRANCHES OF THE GOA STATE CO - OPERATIVE BANK LTD, THE ORDER OF THE LD. CIT(A) ON THE ISSUE STANDS CONFIRMED. 5 . IN THE RESULT, THE APPEAL S FILED BY THE REVENUE STANDS DISMISSED. 6 . ORDER PR ONOUNCED IN THE OPEN COURT ON 1 3 . 0 1 .201 6 . SD/ - ( NARENDRA S. SAINI ) ACCOUNTANT MEMBER SD/ - ( GEORGE MATHAN) JUDICIAL MEMBER P LACE : PANAJI - GOA DATED : 1 3 / 0 1 /201 6 *A* COPY TO : (1) APPELLANT (2) RESPONDENT S (3) CIT CONCERNED (4) CIT(A) CONCERNED (5) D.R (6) GUARD FILE TRUE COPY, BY ORDER ASSISTANT REGISTRAR ITAT, PANAJI BENCH, PANAJI