SLP dismissed against High Court’s ruling that where co-operative bank made deposits in government securities and earned interest, on basis of principle of presumption that government departments had deposited TDS on interest, bank's claim for refund of TDS was to be allowed

Assessee co-operative Bank, made huge investments in Central, State and Trustee Securities and earned interest income over such deposits. When assessee claimed refund of TDS, CBDT granted a part of refund. Balance amount of refund was declined for want of confirmation from deductors that TDS amounts were deposited by them. High Court by impugned order held that since deductors were government departments, it should be presumed that they had deposited TDS amount and, thus, on basis of this principle of presumption, assessee would be held entitled to refund of TDS. Special Leave Petition filed against impugned order was to be dismissed. [In favour of assessee] (Related Assessment years : 2000-01 to 2003-04) – [Chairman, Central Board of Direct Taxes v. Meghalaya Co. Operative Apex Bank Ltd. (2018) 255 Taxman 69 : 92 taxmann.com 374 (SC)]