Commissioner Of Income Taxnon Corporate Circle 11,Chennai v. Chennai Central Co-Operative Bank Limited

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 26.06.2018 CORAM : The Hon'ble Ms.INDIRA BANERJEE, CHIEF JUSTICEAND The Hon'ble Ms.JUSTICE P.T.ASHA T.C. (A) No.243 to 245 of 2018and C.M.P.Nos.4390 and 4391 of 2018 Commissioner of Income TaxNon Corporate Circle 11,Chennai. .. Appellant in all TCAs. -vs- Chennai Central Co-operative Bank Limited, C/o.Ramesh & Ramachandran,Chartered Accountants, New No.39, Old No.29/3, Viswanathapuram Main Road,Kodambakkam, Chennai 600 024. .. Respondents in all TCAs. Appeals filed under Section 260-A of the Income Tax Act,1961, against the common order dated 19.05.2017 passed in I.T.A.Nos.802/Mds/2017, 803/Mds/2017 and 804/Mds/2017 by the IncomeTax Appellate Tribunal, 'B' Bench, Chennai, in respect ofAssessment Years 2009-2010, 2010-2011 and 2013-2014 against theorder made in ITA Nos.24/CIT(A) 13/2009-10, 25/CIT (A) 13/2010-11 and ITA No.51/CIT(A) 13/2013-14 dated 24.03.2017 of theCommissioner of Income Tax (Appeals)-13 121, Mahatma GandhiRoad, Chennai-34 and against the Order in PAN NO. ofthe Deputy Commissioner of Income Tax NCC11, Chennai-6 for theAssessment Year 2009-10, 2010-11 and 2013-2014, dated 23-3-2016and 26/03/2016, respectively. For Appellant:Mr.M.SwaminathanStng. Counsel For Respondent:Mr.A.S.Sriraman J U D G M E N T (Delivered by Ms.Indira Banerjee, Chief Justice) These appeals filed by the Revenue are against a commonorder dated 19.05.2017 passed by the Income Tax AppellateTribunal in I.T.A. Nos.802/Mds/2017, 803/Mds/2017 and804/Mds/2017, whereby the appeals of the respondent/assesseehave been allowed, inter alia, holding that a co-operative bankis not required to deduct tax at source on interest on timedeposits of its members paid or credited before 1[st] June, 2015. 2.The Revenue has raised the following questions, which,according to the Revenue, are substantial questions of law:-i. Whether the Tribunal was correct in holding thatexemption from section 194A (3) (v) was availableto the assessee society, despite the fact itcarried on banking activities ? ii.Whether the Tribunal was right in holding thatthe assessee society has no legal obligation todeduct TDS from interest on time deposits paid tothe members and it is applicable only from01.06.2015 ? 3.The questions have been answered in favour of the assesseeand against the Revenue by a judgment of a Bench of co-ordinatestrength of this Court in Coimbatore District Central Co-operative Bank Limited vs. Income Tax Officer, TDS Ward-I (5),Coimbatore, reported in (2016) 65 taxmann.com 1 (Mds) :: (2016)382 ITR 266. 4.As a Bench of co-ordinate strength, we deem it appropriateto follow the aforesaid judgment and order. The appeals are,therefore, not entertained and the same are dismissed. Nocosts. Consequently, C.M.P.Nos.4390 and 4391 of 2018 also standdismissed. Sd/- Assistant Registrar(CS VI) //True Copy// Sub Assistant Registrar sra To 1.The Assistant Registrar, Income Tax Appellate Tribunal, 'B' Bench, Chennai.2.The Commissioner of Income-Tax (Appeals)-13, 121, Mahatma Gandhi Road, Chennai-34.3.The Deputy Commissioner of Income Tax, Non-Corporate Circle 11, Chennai-6.4.The Commissioner of Income Tax, Non-Corporate Circle II, Chennai.5.The Assistant Registrar, Income Tax Appellate Tribunal, Rajaj Bhavan, Besant Nagar, Chennai.+1cc to Mr.M.Swaminathan, Advocate Sr.40711T.C. (A) Nos.243 to 245 of 2018cp[co]srg 17/07/2018