Rp/100017/2016 Of Shri. Basaweshwar Co-Operative Bank Ltd v. The Commissioner Of Income Tax

IN THRB HIGH COURT OF KARNATAKDHARWAD BENCH DATED THIS THE 13 DAY OF FEBRUARY, 2017 BRRORE THR HON’BLE MR.JUSTICK S.ABDUL NAZBER ANT THERE HON’BLE MR. JUSTICE P.S. DINESH KUM R.P.No.100017/2016INITA No. 100068/201 BEITWEHR SHRI.BASAWBSHWAR CO-OPEBRTIVBANK LTD., RAVIVAR PETH, BELAGAVICTS NO.704-705, REP. BY ITSGBNBRAL MANAGERSHRI.VEKEKRAPP9/O.CHANNBASAPPA KHANAPUR, AGED ABOUT 55 YEARS ...PETITIONER (BY SHRI H.R.KAMBIYAVAR, Adv.,) AND: 1.THR COMMISSIONBR OFINCOME TAX (APPEALS)Dr.B.R.AMBEDKAR ROADBELAGAVI 2.THERE INCOME TAX OFFIC TDS WARD, BELAGAVI ... RESPONDENTS (BY SHRI Y.V.RAVIRAJ, CGC) THIS RBVIBW PRTITION IS FILED UNDER ORDER114 R/W ORDER 47 RULE 1 OF CPC, PRAYING TO REVIEWTHR ORDER DATED 16.12.2015 PASSED IN THE IIANO.1000608/2015 ON THE FILE OF HIGH COURT OKARNATAKA, DHARWAD BENCH, DHARWAD. THIS|RBVIBWPRTITIONCOMING.ON|RORADMISSION THIS DAY,P.S. DINESH KUMAR.J.,MAD THRE FOLLOWIN ORDER Heard. 2. Shri Y.V.Raviraj, learned standing Counsel for the Revenue fairly submits that in view of the fact thatseveralI.T.As. WETEconsideredtogether,>=inadvertence, the order passed in respect of appealsfiled by the Revenue has been printed in the presentI.T.A. preferred by the Assessee. 3. Both the learned Counsel agree that the year ofassessment is 2011-12 and the circular issued by theMinistry of Finance, Government of India, bearing No.19/2015 in F.No.142/14/2015-TPL, is applicable tothe facts of this case. In terms of the said circular, aCo-operative Bank was not required to deduct tax fromthe payment of interest on time deposits of its memberspaid or credited before 1[89]June 2O15. The relevantportion of the said circular reads as follows: “42.5 In view of this, the provisions of thesection 194A(3)(v) of the Income-tax Act havebeen amended so as to expressly provide thatthe exemption provided from deduction of taxfrom payment of interest to members by aco-operative society under section 194A(3)(v) ofthe Income-tax Act shall not apply to _ tpayment of interest on time deposits by theco-operative banks to its members. As thisamendment is effective from the prospectivedateof|7[Ss]June,2015,theco-operative bank shall be required to deducttax from the payment of interest on timedeposits of its members, on or after the I[Ss]June,2015. Hence, a cooperative bank was notrequired to deduct tax from the payment of interest on time deposits of its members paid orcredited before 1[Sf]June, 2015”, 4. As the above Circular is applicable to the facts of this case, the order passed by the ITAT requires to beinterfered with. oO. In the result, impugned order passed by thITAT is set aside and it is held that the aforementioned circular is applicable to the facts of this. caseThe petition stands|allowedto the aforesaid extent. od/- JUDGE od/- JUDGE