Bombay Mercantile Co-operative Bank Ltd. vs. ITO (TDS)-Ward-19(1)(3)

Parties Involved

Facts Summary

The appeals were filed by Bombay Mercantile Co-operative Bank Ltd. against the order of the Additional/Joint Commissioner of Income Tax(A)-1, Ahmadabad, dated 16.10.2024, which in turn arises from the orders passed under section 201 by ITO(TDS), Ward-1(1)(1)(3) of the Income Tax Act, 1961, dated 05.01.2023 & 29.12.2023. The issue pertains to TDS defaults on the part of the assessee. The Assessing Officer (AO) held that the assessee failed to comply with the provisions of section 194A(1) r.w.s. 194A(3)(i) of the Act for deduction of tax on interest over Rs. 10,000/- paid by the Bank. The total sum involved in default was Rs. 24,09,930/- for which TDS was not deducted on payment of interest to four parties. The learned Commissioner of Income Tax (Appeals) (ld. CIT(A)) allowed the assessee’s contention for AY 2017-18 but confirmed the TDS default for AY 2016-17.…

Legal Issues

• 1. Whether the assessee was required to deduct TDS on interest paid to other Co-operative Societies or Co-operative Banks under section 194A of the Act.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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