Ita/635/2015 Of The Commissioner Of Income Tax v. M/S Mysore Merchant Co-Operative Bank Ltd

IN THE HIGH COURT OF KARNATAKA AT BBNGALURU DATBD THIS THER 2 DAY OF JANUARY, 20106 PRESENT THR HON'BLE MR. JUSTICE N.K. PATIL AND THR HON’BLE MRS. JUSTICE S.SUJATHA| ITA No. 6389/201 BETWREN 1.The Commissioner of Income-tax, TDS 00/1, Shilpashree Vidhyaranya ComplexVishveshwaranagarMysore-570 OOS.VishveshwaranagarMysore-570 OOS. 2.The Income-tax Officer,TDS WardTDS Ward 99/1, Shilpashree Vidhyaranya Complex Vishveshwaranagar Mysore-9570 OO8. ... Appellant (By Sri. K.V.Aravind, Advocate) AND M/s. Mysore Merchant Co-OperativeBank Ltd.,Jaganmohan Palace RoadMysore.PAN:BLRTO 3SODOF. ...Responden This Appeal is filed under Section 260-A of Income-tax|Act 1961, to set aside the order passed by the ITAT,|Bangalore in ITA No.8/7/Bang/2015 dated 29.06.2015confirming the order of the Appellate Commissioner and|confirming the order passed by the Income Tax Officer, TDSWard,Mysore. This Appeal coming on for Admission, this. day, |N. K. Patil, J..delivered the following: | JUDGMENT This appeal by the Revenue directed against the)impugnedOrder.dated29 Ob6.2015passed1n ITA|No.8/7/Bang/2015 on the file of the Income Tax AppellateTribunal, Bangalore, confirming the order of the Appellate|Commissioner confirming the order of the Income Tax|Officer, TDS Ward, Mysore, to consider the following|substantial questions of law. “1.Whether the Tribunal was correct in relyingon a circular No.9/2002 when the same wasquashed by the Hon’ble Mumbai High Court andwill a circular become a legal document merely forthe reason that it was not withdrawn by theissuing authority ?. anWhether the Tribunalwas correct inconcluding that the cooperative banks were neverrequired to deduct tax on the interest paid to itsmembers on the ground that they were exemptunder Section 194A(3)(v) of the Income Tax Act,1961] ? 3.Whetherthe Tribunal1ScorrectIn overlookingtheestablishedprincipleof“Generalia specialibus non derogant” vis a vis the special provisions of Section 194A(3)(vita)(b) andgeneral provisions of Section 194A(3)(v) of theIncome-tax Act, 1961?. 4 |Whether the provisions of section 194A(3)(v)|of the Act are applicable to nominal member orsympathizer member also or the provisions willapply only to such members who hold shares andhave right to vote in general body meeting andentitled to share of profit is of the co-operativesociety, keeping in view of circular No.9 of 2002issued by the CBDT?. 5.|Whether in respect of interest paid on timedeposit is by a Co-operative society engaged inthe business of banking, the clause(v) whichdeals with Co-operative Societies will apply orclause (via) which mentions specifically ‘a co-operative society engaged in the business ofbanking finds application and is 194A(3)(v)applicable P. 2.We have heard the learned Counsel for the Appellants. 3.Learned Counsel for the appellants submitted|that the instant appeal may be dismissed as withdrawnreserving liberty to the appellants to file an appeal on the same cause of action after incorporating necessary questionsof law for consideration. 4Submission ot the learned Counsel for the|appellants is placed on record. 5.The appeal is dismissed as withdrawn reserving|liberty to the appellants to file an appeal on the same cause|of action incorporating additional substantial questions of law, within two weeks from the date of receipt of copy of thisJudgment. Ordered accordingly. AN/- Sd/-|JUDGE Sd/-JUDGE