MANNARKKAD RURAL SERVICE CO-OPERATIVE BANK LTD.NO.P-922 V. THE DIRECTOR OF INCOME TAX

WP(C)/25368/2013

AI Insights

The case involves multiple cooperative banks in Palakkad District, represented by their secretaries, challenging notices issued by the Income Tax Department under Section 133(6) of the Income Tax Act, 1961. The notices demanded information to ensure transparency in the banks' transactions. The petitioners argued against the notices, but the court, referencing a Supreme Court decision and previous judgments, upheld the validity of the notices. The court emphasized the importance of transparency in financial transactions and allowed the banks to request additional time to comply with the notices.

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 755816 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 17-12-2013
• Assessment Year: misc
• Other Referred Cases: Kathiroor Service Co-operative Bank Ltd. and Others vs. Commissioner of Income Tax and Others [(2013) 263 CTR (SC) 129], Chavassery Service Co-operative Bank Ltd. and Others vs. Income Tax Officer and Others [(2010) 231 CTR 404 (Ker)], Dolgobinda Paricha vs. Nimai Charan Misra and Others (AIR 1959 SC 914)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH; P K R MENON
• Assessee Lawyers: V M KURIAN; MATHEW KURIAN; K T THOMAS; N SUNIL
• Keywords: Co-operative Banks; Extension of time; Income Tax; Notice; Transparency
• Section: 133(6)

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR.JUSTICE V.CHITAMBARESH TUESDAY, THE 17TH DAY OF DECEMBER 2013/26TH AGRAHAYANA, 1935 WP(C).No. 25368 of 2013 (U) ---------------------------------------- PETITIONERS: --------------------- 1. MANNARKKAD RURAL SERVICE CO-OPERATIVE BANK LTD.NO.P-922, MANNARKKAD P.O, PALAKKAD DISTRICT, PIN-678 582, REPRESENTED BY ITS SECRETARY. 2. ALANALLUR SERVICE CO-OPERATIVE BANK LTD. NO.F-1178, ALANALLUR P.O, PALAKKAD DISTRICT, PIN-678 601, REPRESENTED BY ITS SECRETARY. 3. KALLADIKODE SERVICE CO-OPERATIVE BANK LTD.NO.7489, KALLADIKODE P.O, PALAKKAD DISTRICT, PIN-678 576, REPRESENTED BY ITS SECRETARY. 4. MANNARKKAD TALUK GOVT. EMPLOYEES - CREDIT CO-OP. SOCIETY LTD. NO.P-630, MANNARKAD P.O, PALAKKAD DISTRICT, PIN- 678 582, REPRESENTED BY ITS SECRETARY. 5. MANNARKKAD TALUK AIDED SCHOOL EMPLOYEES - CO-OPERATIVE CREDIT SOCIETY LTD.NO.945, MANNARKKAD P.O, PALAKKAD DISTRICT, PIN-678 582, REPRESENTED BY ITS SECRETARY. 6. MANNARKKAD TALUK CO-OP. EMPLOYEES - CO-OPERATIVE SOCIETY LTD.NO.P-629, MANNARKKAD P.O, PALAKKAD DISTRICT, PIN-678 582, REPRESENTED BY ITS SECRETARY. 7. ARIYUR SERVICE CO-OPERATIVE BANK LTD.NO.F-1566, KOTTOPADAM P.O, PALAKKAD DISTRICT, PIN-678 583, REPRESENTED BY ITS SECRETARY. 8. KARAKKURISSI SERVICE CO-OPERATIVE BANK LTD.NO.P-1025, KARAKKURISSI P.O, PALAKKAD DISTRICT, REPRESENTED BY ITS SECRETARY. 9. POTTASSEERY SERVICE CO-OPERATIVE BANK LTD.NO.P-543, POTTASSERY P .O, PALAKKAD DISTRICT, PIN-678 582, REPRESENTED BY ITS SECRETARY. 10.CHETHALLUR SERVICE CO-OPERATIVE BANK LTD.NO.1462, CHETHALLUR P.O, PALAKKAD DISTRICT PIN-678 583 REPRESENTED BY ITS SECRETARY. 11.THACHAMPARA SERVICE CO-OPERATIVE BANK LTD.NO.3150 THACHANPARA P.O, PALAKKAD DISTRICT PIN-678 582 REPRESENTED BY ITS SECRETARY. Prv. W.P.(C).NO.25368/2013-U: 12. KUMARAMPUTHUR SERVICE CO-OPERATIVE BANK LTD.NO.P-373 KUMARAMPUTHUR P.O, PALAKKAD DISTRICT PIN-678 583 REPRESENTED BY ITS SECRETARY . 13. KOTHAKURISSI SERVICE CO-OPERATIVE BANK LTD. NO.F-1049 P.O.PANAMANNA, PALAKKAD DISTRICT PIN- 679 501. REPRESENTED BY ITS SECRETARY. 14. CHERPALACHERRY SERVICE CO-OPERATIVE BANK LTD. NO.P-589 CHERPALACHERY P.O, PALAKKAD DISTRICT PIN-679 503. REPRESENTED BY ITS SECRETARY. 15. SREEKRISHNAPURAM SERVICE CO-OPERATIVE BANK LTD.NO.F-1213 SREEKRISHNAPURAM, PALAKKAD DISTRICT PIN-678 002. REPRESENTED BY ITS SECRETARY. 16. SHORANUR SERVICE CO-OPERATIVE BANK LTD.NO.P-578 SHORANUR P.O PALAKKAD DISTRICT. REPRESENTED BY ITS SECRETARY PIN-679 121. 17. KOPPAM SERVICE CO-OPERATIVE BANK LTD. NO.F-1205 PULASSERY P .O, PALAKKAD DISTRICT PIN-679 307. REPRESENTED BY ITS SECRETARY. 18. PALLIPPURAM SERVICE CO-OPERATIVE BANK LTD. NO.2532 PALLIPPURAM P.O, PALAKKAD DISTRICT PIN-678 006. REPRESENTED BY ITS SECRETARY. BY ADVS.SRI.V.M.KURIAN, SRI.MATHEW B. KURIAN, SRI.K.T.THOMAS, SRI.N.SUNIL. RESPONDENTS: ----------------------- 1. THE DIRECTOR OF INCOME TAX (INTELLIGENCE), CENTRAL REVENUE BUILDING, I.S.PRESS ROAD, ERNAKULAM, KOCHI-682 018. 2. THE INCOME TAX OFFICER (INTELLIGENCE), AYAKAR BHAVAN, SAKTHAN THAMPURAN NAGAR THRISSUR-680 001. BY SRI.JOSE JOSEPH, S.C, SRI.P.K.R.MENON, S.C. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 17-12-2013, ALONG WITH W. P.(C). NO. 30840/2013 AND CONNECTED CASES,THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: Prv. W.P.(C).NO.25368/2013-U: APPENDIX PETITIONER'S EXHIBITS: EXHIBIT P1: TRUE COPY OF THE NOTICE DATED 06.09.2013 ISSUED TO THE 1ST PETITIONER. EXHIBIT P2: TRUE COPY OF THE APPLICATION DATED 13.9.2013 SEEKING TIME FILED BEFORE THE 1ST RESPONDENT. EXHIBIT P3: TRUE COPY OF REPLY DATED 27.9.2013 ISSUED BY THE 2ND RESPONDENT. EXHIBIT P4: TRUE COPY OF THE WRITE UP DATED 09.10.2013 PUBLISHED IN THE MALAYALA MANORAMA DAILY. EXHIBIT P5: STATEMENT REGARDING THE DEPOSIT POSITION IN THE 1ST PETITIONER BANK HAVING ABOUT 12000 MEMBERS. EXHIBIT P6: COPY OF THE CERTIFICATE DTD. 29/11/2013 ISSUED BY THE ASST. REGISTRAR OF CO-OPERATIVE SOCIETIES. EXHIBIT P7: COPY OF THE CERTIFICATE DTD. 29/11/2013 ISSUED BY THE ASST. REGISTRAR OF CO-OPERATIVE SOCIETIES. EXHIBIT P8: CERTIFICATE DTD. 30/11/2013 IN RESPECT OF THE P.1. SHOWING THE DISBURSEMENT OF AGRICULTURAL LOAN AND SALES OF AGRICULTURAL INPUTS. EXHIBIT P9: COPY OF THE LETTER DTD. 25/10/2013 ISSUED BY THE RESERVE BANK OF INDIA TO THE KATHIRUR SERVICE CO-OPERATIVE - BANK LTD. EXHIBIT P10: COPY OF THE LETTER DTD. 29/10/2013 ISSUED TO THE CALICUT CITY CO-OPERATIVE BANK LTD. NO.D.2777. EXHIBIT P11: COPY OF THE REPORT IN DHANAM BI-WEEKLY DTD. 15/11/2013. RESPONDENTS' EXHIBITS: EXT.R1.(a): COPY OF THE JUDGMENT OF THE HON'BLE SUPREME COURT DTD. 27/08/2013. EXT.R1.(b): COPY OF THE LETTER DTD. 09/10/2013. EXT.R1.(c): COPY OF THE LETTER DTD. 13/09/2013. EXT.R1.(d): COPY OF THE RECORD OF DISCUSSION. //TRUE COPY// P.A. TO JUDGE. Prv. V.CHITAMBARESH,J. = = = = = = = = = = = W.P.(C)Nos.25368, 25816, 28676, 29160, 29861, 30299, 30351, 30446, 30450, 30451, 30840, 31160, 31198 31275,31304,31307, 31318 and 31319 of 2013 = = = = = = = = = = = == = = = = Dated this the 17th day of December, 2013 J U D G M E N T The challenge to similar notices issued by the Income Tax Department has been turned down by judgment dated 12-12-2013 in W.P(C)No.30486/2013 and connected cases. The learned Single Judge has followed the decision of the Supreme Court in Kathiroor Service Co-operative Bank Ltd. and Others vs. Commissioner of Income Tax and Others [(2013) 263 CTR (SC) 129]. 2. The Supreme Court has affirmed the decision of the Division Bench of this Court in Chavassery Service Co- operative Bank Ltd. and Others vs. Income Tax Officer and Others [(2010) 231 CTR 404 (Ker)]. The opinion of the Income Tax Officer is manifest by his conduct in issuing the notices under Section 133(6) of the Income Tax Act, 1961. [See. Dolgobinda Paricha vs. Nimai Charan Misra and Others (AIR 1959 SC 914)]. 3. The Co-operative Banks should not feel shy to furnish W.P.(C)Nos.25368 and con.cases. 2 the information sought by the Income Tax Department in order to ensure that the transactions of the depositors are wholly transparent. The petitioners are however free to move the authority for granting extension of time to furnish the particulars which shall be dealt with in accordance with law. The writ petitions are dismissed. V.CHITAMBARESH JUDGE smm "