M/s District Cooperative Bank Limited vs. Deputy Commissioner of Income Tax

Parties Involved

Facts Summary

The facts of the case are that the assessee, a District Cooperative Bank, paid interest to its depositors without deducting tax. The Assessing Officer required the bank to furnish details of interest paid above Rs. 10,000/- and the bank claimed to have obtained Forms 15G/15H from the depositors. However, the Assessing Officer rejected the bank's plea as the bank had not submitted these forms to the jurisdictional Commissioner/Chief Commissioner of Income Tax. The bank appealed to the Commissioner of Income Tax (Appeals) who sustained the Assessing Officer's order. The bank further appealed to the Income Tax Appellate Tribunal. The Tribunal set aside the order of the Commissioner of Income Tax (Appeals) and restored the matter to the Assessing Officer for re-examination of the Forms 15G/15H.…

Legal Issues

• 1. Whether the Assessing Officer and the Commissioner of Income Tax (Appeals) were justified in rejecting the Forms 15G/15H submitted by the assessee?
• 2. Whether the assessee can be held liable for tax on interest paid without deduction?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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