Ita/100106/2015 Of Maratha Co-Ooperative Bank Ltd v. The Commissioner Of Income Tax

IN THER HIGH COURT OF KARNATAKDHARWAD BENCH ON THE 19 DAY OF JANUARY, 2017 BEEBEO THE HON’BLE MR.JUSTICE RAVI MALIMATH AND THE HON’BLE MR.JUSTICE K.SOMASHEKAR ITA NO©O.100106 OF 20 BETWERE MARATHA CO-OPERATIVE BANK LTD.,1477, BASVAN GALLI, BELAGAVIREP. BY ITS CHAIRMANSHRI DEEPAK ARJUNRAO DALVIAGE: 73 YEARS, OCC: BUSINESSR/O. TILAKWADI, BELAGAVI (BY SRI. SANGRAM 8. KULKARNI, ADV.) — APPEBELLANT ANI 1.THE COMMISSIONER OF INCOME TAX (APPEALS),KHIMJIBHAI COMMERCIAL COMPLEX,KHIMJIBHAI COMMERCIAL COMPLEX, OPP. CIVIL HOSPITAL, BELGAUM, 2.INCOME TAX OFFICER, TDS WARD,BELGAUM, KHIMJIBHAI COMMERCIAL COMPLEX,OPP: CIVIL HOSPITAL, BELGAUM— RESPONDENTS (BY SRLY.V.RAVIRAJ, ADV.) THIS ITA IS FILED UNDER SKCTION 260A OF THRINCOME TAX ACT, 1961 PRAYING TO ALLOW THE APPEAL INBNTIREBETY AND SEIT ASIDE THR ORDER DATED 20.03.2 PASSED BY THE INCOME TAX APPELLATE TRIBUNAL, PANAJIIN ITA NO.433/PNJ/2014, THIS ITA COMING ON FOR ADMISSION THIS DAY, RAVIMALIMATH J., DELIVERED THE FOLLOWING: JUDGMENT The assessee has filed this appeal by raising varioussubstantial questions of law and in particular 3 and 5: 9|Whether the Ilribunal wasjustified in law innot holding the appellant was entitled for benefit of Section194.A(3)(V) of the Act in view of the circular No.9/200dated 11.09.2002 on thefacts and circumstances ofthe case? 45 Whether the respondents committed error bynot extenaing the benefit of the clarification gwen by theCBDI regarding applicability of IDS lability to Co-operative Danks with effectfrom 07.06.2015¢" 2.sri. Y.V.Raviraj, learned counsel appearing for therespondents submits that in an identical circumstance, theDivision Bench of this Court in its judgment dated 16.12.2015passed in ITA Nos.100047 of 2015 and 100048-49 of 2015 heldthat the finding of the Tribunal that the Co-operatives Banks wererequired to deduct tax at source is unsustainable. Consequently, the appeals were allowed. Hence, it 1s pleaded that the presentappeal be disposed oft by following the said order. 2.On hearing learned counsels, we are of theconsidered view that the facts and the questions of law that arisefor consideration in the appeal are identical to the one disposedoff in the aforesaid order. Consequently, following the aforesaidjudgement the finding of the Tribunal that the Co-operative Bankare required to deduct tax source is unsustainable. As a result, theappeal filed by the assessee stands allowed. Sd/-JUDGE Rsh Sd/-JUDGE