The court held that past non-deduction of TDS under applicable provisions does not attract penalties.

JUDGMENT

This writ petition is submitted by the petitioner challenging Ext.P1 by which the 4^th respondent directed the petitioner Society to deduct TDS from the payment of interest made to the depositors, under Section 194A (3)(v) of the Income Tax Act . However, the issue raised by the petitioner is already decided against the petitioner as per the decision rendered in Vellangallur Peoples Welfare Co operative Society Ltd. v. Union of India [ 2025 (6) KLT 163 ]. In the light of the above, the provision of Section 194 A(3)(v) is applicable to the petitioner. However, in the said decision it was ordered that, in respect of the transactions already took place till the disposal of the said writ petition, no adverse consequences would follow for not deducting the TDS. In the light of the above, it is ordered that, even while holding that the aforesaid provision is applicable to the petitioner, no liability can be imposed upon the petitioner for non deduction of TDS for the transactions carried till today.

This writ petition is disposed of accordingly.