No TDS Deduction required u/s 194A(3)(iii)(a) of Income Tax Act on Interest payment to Cooperative Society: ITAT [Read Order]

The Income Tax Appellate Tribunal ( ITAT ), Pune bench ruled that Interest payment made to cooperative society does not attract Tax Deduction at Source ( TDS ) deduction under Section 194A(3)(iii)(a) of Income Tax Act, 1961.

The Assessee Tokai Sahakari Sakhar Karkhana Ltd after filing the return of income, during the assessment proceedings the AO disallowed the various interest paid to Maharashtra State Cooperative Bank.

Aggrieved  assessee filed appeal before the CIT(A) who dismissed the appeal. Accordingly the assessee filed a second appeal before the tribunal.

After analyzing the submission of both parties the bench comprising  S.S.Godara ( Judicial Member ) and G.D. Padmahshali, ( Accountant Member ) observed that” interest payments do not attract TDS deduction under section 194A(3)(iii)(a)of the Income Tax Act regarding the foregoing twin Co-operative Society’s/banks and under section 194A(3)(V) Income Tax Act relating payments to members made by a co-operative society; respectively.”

Anand Partani, the counsel appeared for the assessee and M.G.Jasnani counsel appeard for revenue

To Read the full text of the Order CLICK HERE

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