Dismissing the appeal of the revenue the Court held that ,in view of decision in case of CIT v. Karnataka Vikas Grameena Bank [ITA No. 100060 of 2016, dt. 7-6-2017], where assessee, a co-operative society, carrying on banking business, paid interest income to its members on time deposits, it was not required to deduct tax at source under section 194A by virtue of exemption granted vide clause (v) of sub-section (3) of section 194A. (AY. 2009-10, 2010-11)
CIT (A) v. Bijapur District Central co -Operative Bank Ltd (2018) 256 Taxman 51 (Karn)(HC)Editorial: SLP of revenue is dismissed ; CIT v. Bijapur District Central Co-Opertaibe Bank Ltd ( 2019) 260 Taxman 297 (SC)
S. 194A : Deduction at source – Interest other than interest on securities –Co –operative society- Banking business-Interest paid to members on time deposits is not required to deduct tax at source .