#TDS Exemption

Co-operative banks are not liable to deduct TDS on interest they pay to non-member co-operative societies under Section 194A(3)(v). The Bombay High Court set aside the ITAT order that treated the banks as assessee-in-default, confirming the statutory exemption. The ruling relieves all co-operative banks and their non-member society borrowers from TDS obligations.

Bombay High Court rules that compensation awarded under the National Highways Act, 1956, is immune from TDS deductions due to the absolute tax exemption under Section 96 of the Right to Fair Compensation Act, 2013. The ruling reinforces that arbitral awards under land acquisition laws are judgment-debts, shielding landowners from unilateral tax deductions.

The Bombay High Court has ruled that transit rent for displaced slum dwellers must be paid from the date their dwellings are demolished, not from the date they are formally certified as eligible. This ensures that affected families are not penalized for bureaucratic delays in processing their claims, reinforcing the constitutional right to housing under Article 21 and placing a direct financial obligation on developers from the moment displacement occurs.