IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “A” MUMBAI BEFORE SHRI OM PRAKASH KANT (ACCOUNTANT MEMBER)

AND MS. KAVITHA RAJAGOPAL (JUDICIAL MEMBER)

ITA No. 1806/MUM/2025 Assessment Year: 2016-17 &

ITA No. 1807/MUM/2025 Assessment Year: 2016-17 &

ITA No. 1808/MUM/2025 Assessment Year: 2016-17 &

ITA No. 1809/MUM/2025 Assessment Year: 2016-17 &

ITA No. 1810/MUM/2025 Assessment Year: 2016-17 &

ITA No. 1811/MUM/2025 Assessment Year: 2016-17 Abhyudaya Co-operative Bank Ltd. Income Tax Officer (TDS)

Dahisar Branch, Mumbai TDS Ward 1(1)(1), Mumbai Shop No.14 & 15, D Wing, Northern Vs. Room No. 413, 4^th Floor, Heights, Bldg 1, Shanti Ngr, Dongri, Cumballa Hill, MTNL Tele S V Rd, Dahisar E- 400 068 Building, Pedder Road, Cumballa Hill, Mumbai- 400 026 PAN NO. AAAAA 0300 L Appellant Respondent Assessee by : Mr. Sharad A Vaze Revenue by : Mr. Aditya M. Rai, CIT-DR Date of Hearing : 23/06/2025 Date of pronouncement : 30/06/2025

ORDER

PER BENCH These appeals by the assessee are directed against separate orders, all dated 12.02.2025, passed by the Ld. Additional/Joint Commissioner of Income-tax (Appeals) – 3 Bengaluru [in short ‘the Ld. CIT(A)’] for assessment year 2016-17, in relation to tax liability raised for non deduction tax at source (TDS) on interest payments, raised by the ld Assessing Officer on various branches of the assessee. As common issue-in-dispute is involved in all these appeals, therefore same were heard together and disposed off by way of this consolidated order for sake of convenience.

2. Identical grounds have been raised in all these appeals and therefore as per consent of parties, the ITA No. 1806/Mum/2025 is taken as lead case for adjudication, the grounds of which are reproduced as under:

“1. In the facts and circumstances of the case, the lower authorities have erred in law as well as in fact treating assessee in default in respect of alleged non-deduction of tax from interest paid to co-operative societies u/s 194A of the Income Tax Act 1961.

2. Without prejudice to Ground No 1 above, the lower authorities have erred in law as well as in fact that interest received by co-operative societies is deductible u/s 80P of the Act, therefore, the requirement of TDS u/s 194A is redundant hence TDS applicability u/s 194A is infructuous.

The appellant craves leave to add, alter, omit or substitute any of the grounds at the time of hearing of the appeal.”

3. Briefly stated facts of the case are that the assessee is a cooperative society registered under the Multi-State Cooperative Societies Act,2002 and was engaged in carrying business of banking. The Assessing Officer (TDS), Mumbai conducted TDS survey at various branches of the assessee including the branch in present appeal to verify applicability of the TDS provisions. During the course of the verification, the assessing officer noticed that the assessee had not deducted tax on ‘interest’ payment made on fixed deposit held to cooperative societies and other persons. The ld. Assessing officer according initiated the proceeding under the provision of section 201(1)/201(1A) of the Income Tax Act, 1961 (in short ‘the Act’). In response, the assessee submitted that income credited by or paid by a cooperative society to a member thereof would not be covered under the provision of section 194A(3)(v) of the Act. The Assessing Officer was not satisfied with the submission of the assessee and accordingly he treated the assessee has assessee-in-default in respect of interest payment amounting to Rs.6,16,733/-, a list of which has been reproduced by the assessing officer in paragraph 7 of the impugned order u/s 201(1)/201(1A) of the Act. The demand computed by the assessee is reproduced as under:

“In view of the above, the total demand on account of TDS default is computed as under:

Particulars Amount(Rs.)

TDS default amount u/s 201(1) on 6,16,733 ”

4. Aggrieved, the assessee filed appeal before the Ld. CIT(A) and filed detailed submission claiming that assessee is primarily a cooperative societ