The Jalpaiguri Central Co-Operative Bank Limited vs. ITO (TDS), Ward-6(1), Jalpaiguri

Parties Involved

Facts Summary

The assessee, The Jalpaiguri Central Co-Operative Bank Limited, filed an income return for the assessment year 2017-18 on 30.12.2017, declaring a total income of ₹2,81,89,200/-. A spot verification by the TDS team revealed that the assessee had paid interest aggregating to ₹13,81,40,928/- without deducting tax at source under Section 194A of the Income Tax Act. The Assessing Officer passed an order under Sections 201(1) & 201(1A) of the Act, treating the assessee as an assessee in default for non-deduction of TDS on interest paid below ₹10,000/-, interest paid to co-operative societies, and interest on savings accounts. The assessee filed an appeal against this order, which was dismissed by the Additional/Joint Commissioner of Income Tax (Appeals), Panaji. The assessee then filed an appeal before the Tribunal.…

Legal Issues

• 1. Whether the Assessment Order passed by the Income Tax Officer (TDS) and the Additional/Joint Commissioner of Income Tax (Appeals) is lawful and based on facts.
• 2. Whether the determination of TDS payable on interest paid below ₹10,000/- is based on facts.
• 3. Whether the determination of TDS payable on interest paid to other co-operative societies is based on facts.
• 4. Whether the non-allowance of full credit of TDS challans paid should be allowed.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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