CHIKMAGALUR JILLA MAHILA SAHAKARA BANK NIYAMITHA vs. ASSISTANT COMMISSIONER OF INCOME TAX
ISSUE
Whether the payments made by way of interest by the assessee society to its members would attracts the deduction of tax or not.
HELD
The present case before us pertains to the payments made by way of interest by the assessee society to its members would attracts the deduction of tax or not.
In this regard, if we look into the language used in the above provisions more particularly 194A(3)(v), then it is clear that the case of assessee shall squarely fall within this provision, being specific provision, irrespective whether Rs.10,000/- or more is paid by the assessee to its member or not and therefore in the considered opinion of the bench the other provision relied upon by the Ld. DR i.e., 194A(3)(i)(b) shall not be applicable being general in nature. It is settled proposition of law that the specific provision {i.e 194A(3)(v)}, shall override the general provision, {i.e 194A(3)(i) (b)}, in case of over lapping or conflict , hence the section 194A(3)(v)} is applicable to the facts of the present case . Therefore the contention of ld DR is not correct.
Further the case is also covered in favour of assessee by the decision of the coordinate bench in the matter of Vasavamba Cooperative Bank Ltd (supra), further there is no reason for this bench to take a contrary view, as the facts are similar to the facts of present case. Following the same we allow the appeal of the assessee.
CONCLUSION
Specific provision {i.e 194A(3)(v)}, shall override the general provision, {i.e 194A(3)(i) (b)}, in case of over lapping or conflict.
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