Bhopal Co.op Central Bank Ltd., Bhopal V. The ACIT (TDS), Bhopal

ITA 574/IND/2012

• Counselvise Citation: 57422714 RSA 2012
• Duration Of Justice: 1 year(s) 11 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-10-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2002-2003
• Appeal Filed On: 07-11-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R A VERMA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE P.K. BANSAL, ACCOUNTANT MEMBER AND SHRI MUKU L KR. SHRAWAT, JUDICIAL MEMBER PAN NO. AAAAB3271B ITA NO.574/IND/2012 A.Y. : 2002-03 BHOPAL COOP. CENTRAL BANK LIMITED, BHOPAL VS. ACIT, (TDS), BHOPAL. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI AMIT JAIN, C. A. REVENUE BY : SHRI R. A. VERMA, SR. DR / // / DATE OF HEARING : 16.09.2014 /DATE OF PRONOUNCEMENT: 13/10/2014 / O R D E R PER P.K.BANSAL, A.M. THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A), BHOPAL, DATED 08.08.2014. 2. THE ONLY ISSUE INVOLVED IN THIS APPEAL FILED BY THE ASSESSEE RELATES TO THE ISSUE WHETHER THE ASSESSEE IS BOUND TO DEDUCT TDS IN RESPECT OF THE PAYMENT OF INTEREST MA DE TO THE M.P. STATE AGRICULTURAL MARKETTING BOARD U/S 194A O F THE INCOME-TAX ACT, 1961. 3. WE HAVE HEARD THE RIVAL SUBMISSIONS AND CAREFULLY CONSIDERED THE SAME ALONGWITH THE ORDERS OF THE TAX AUTHORITIES BHOPAL COOP. CENTRAL BANK LIMITED, BHOPAL. I.T.A.NO. 574/IND/2012 A.Y.2002-03 2 BELOW. WE HAVE ALSO GONE THROUGH THE PROVISIONS OF SECTION 194A. SECTION 194A SUB SECTION (3) STATES THAT THE PROVIS IONS OF SUB SECTION (1) SHALL NOT APPLY. SUB SECTION (3)(F) LAYS DOWN AS UNDER :- (F) SUCH OTHER INSTITUTION, ASSOCIATION OR BODY [ OR CLASS OF INSTITUTIONS, ASSOCIATIONS OR BODIES] WHICH THE CENTRAL GOVERNMENT MAY, FOR REASONS TO BE RECORDED IN WRITI NG, NOTIFY IN THIS BEHALF IN THE OFFICIAL GAZETTE; 4. THUS, FROM THE READING OF SECTION 194A(3)(III)(F) , IT IS APPARENT THAT IF ANY INTEREST HAS BEEN CREDITED OR PAID TO SUCH OTHER INSTITUTION OR ASSOCIATION OR BODY OR CLASS O F INSTITUTION, ASSOCIATION OR BODIES, WHICH THE CENTRAL GOVERNMENT MAY NOTIFY IN THIS BEHALF IN THE OFFICIAL GAZETTE, THE PAYER H AS NOT TO DEDUCT ANY TDS ON SUCH INCOME BY WAY OF INTEREST. IN THE C ASE OF THE ASSESSEE, WE NOTED THAT THE CENTRAL GOVERNMENT HAS BROUGHT OUT A NOTIFICATION U/S 194A(3)(III)(F). IN THE SAID NOT IFICATION, AT PAGE 44 OF THE PAPER BOOK AT SRL.NO.37 MARKET COMMITTEE S ESTABLISHED UNDER THE STATE AGRICULTURE PRODUCE MAR KETS ACT IN VARIOUS STATES HAS BEEN NOTIFIED VIDE S.O.NO.2203 D ATED 16.6.1970. IN VIEW OF THIS NOTIFICATION, WE ARE OF THE VIEW THAT THE ASSESSEE IS NOT REQUIRED TO DEDUCT ANY TDS ON PAYME NT OF THE INTEREST MADE TO M.P. STATE AGRICULTURE MARKETING B OARD. WE, BHOPAL COOP. CENTRAL BANK LIMITED, BHOPAL. I.T.A.NO. 574/IND/2012 A.Y.2002-03 3 ACCORDINGLY, SET-ASIDE THE ORDER OF THE CIT(A) AND DIRECT THE ASSESSING OFFICER NOT TO TREAT THE ASSESSEE IN DEFA ULT IN RESPECT OF NOT DEDUCTING TDS ON THE INTEREST PAID TO M.P. STAT E AGRICULTURE MARKEING BOARD AS U/S 194A, THE ASSESSEE IS NOT REQ UIRED TO DEDUCT ANY TDS ON THIS AMOUNT. THUS, THE APPEAL OF THE ASSESSEE IS ALLOWED. 5. IN THE RESULT, THE APPEAL IS ALLOWED. SD/- SD/- (MUKUL KR. SHRAWAT) (P. K. BANSAL) JUDICIAL MEMBER ACCOUNTANT M EMBER INDORE : DATED 13/10/2014 CPU*SPS / COPY OF THE ORDER FORWARDED TO : 1. ! / THE APPELLANT 2. '# ! / THE RESPONDENT. 3. $%$&' # # ( / CONCERNED CIT 4. # # ( ( ) / THE CIT(A), INDORE 5. +,# &' , # # &' , -.% / DR, ITAT, INDORE 6. ,/0 1 / GUARD FILE. / BY ORDER, -# -# -# -# $2 $2 $2 $2 (ASSTT.REGISTRAR) ITAT, INDORE BHOPAL COOP. CENTRAL BANK LIMITED, BHOPAL. I.T.A.NO. 574/IND/2012 A.Y.2002-03 4 1. DATE OF DICTATION- 16.09.2014 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER .09.2014 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S. .. 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT .. 5. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 6. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK . 7. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 8. DATE OF DESPATCH OF THE ORDER