THE KUZHIMANNA SERVICE CO-OPERATIVE BANK V. THE INCOME TAX OFFICER

WP(C)/35416/2010

AI Insights

The case involves multiple Service Co-operative Societies challenging the sustainability of notices issued under Section 133(6) of the Income Tax Act, claiming they are not 'persons' under the Act. The High Court of Kerala referenced a previous Division Bench judgment which upheld the validity of such notices but required prior permission from the Director or Commissioner. However, due to an interim stay by the Supreme Court on this judgment, the High Court directed that no further action be taken on the notices until the Supreme Court's final decision.

• Counselvise Citation: [2010] 140 COUNSELVISE.COM (IT) 761406 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 29-11-2010
• Assessment Year: misc
• Other Referred Cases: W.A.No.2333 of 2009 and connected cases, SLP(C) No.3976 of 2010 and connected cases
• Laws Referred To: Income Tax Act, Kerala Co-operative Societies Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH
• Assessee Lawyers: U K DEVIDAS
• Keywords: Income Tax; Legal Proceedings; Notices; Section 133(6); Service Co-operative Societies
• Section: 133(6)

Judgement Text

" IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM MONDAY, THE 29TH NOVEMBER 2010 / 8TH AGRAHAYANA 1932 WP(C).No. 35416 of 2010(B) ---------------------------------- PETITIONER(S): ------------------- THE KUZHIMANNA SERVICE CO-OPERATIVE BANK LTD.NO.D.1899, REP.BY ITS PRESIDENT KUZHIMANNA P.O., MALAPPURAM DISTIRCT. BY ADV. SRI.U.K.DEVIDAS RESPONDENT(S): -------------------- 1. THE INCOME TAX OFFICER (CIB), OFFICE OF ASSISTANT DIRECTOR OF INCOME TAX (INV.), KOZHIKODE. 2. THE ASSISTANT DIRECTOR OF INCOME TAX, KOZHIKODE. 3. THE COMMISSIONER OF INCOME TAX (CIB), COCHIN, ERNAKULAM. 4. UNION OF INDIA, REPRESENTED BY THE SECRETARY TO THE GOVERNMENT OF INDIA, MINISTRY OF FINANCE, NEW DELHI. R1 TO R3 BY ADV. JOSE JOSEPH, SC. INCOME TAX THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 29/11/2010, ALONG WITH WPC. NO. 35418/2010 AND CONNECTED CASES THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.K.ABDUL REHIM, J -------------------------------------------------- W.P(C) Nos.35416/2010, 35417/2010, 35418/2010, 35431/2010 & 35465/2010 -------------------------------------------------------- Dated this the 29th day of November, 2010. J U D G M E N T The petitioners in these cases are Service Co- operative Societies registered under the provisions of the Kerala Co-operative Societies Act. Challenge is against sustainability of notices issued under Section 133(6) of the Income Tax Act, interalia on the basis of the contention that, the petitioners are not 'persons' coming within the purview of Income Tax Act. 2. The issue was subject matter of challenge before this Court in a batch of writ petitions, which ultimately culminated in a judgment of a Division Bench, in W.A.No.2333 of 2009 and connected cases. This Court upheld the validity of similar notices, however, making it clear that such notices can be issued only with prior permission of the Director or the Commissioner, as the case may be, and clarified that if such notices does not disclose W.P(C) Nos.35416/2010, 35417/2010, 35418/2010, 35431/2010 & 35465/2010 2 such prior permission the matter need be re-examined by the authority concerned and further proceedings shall be pursued only after obtaining such permissions. 3. It is brought to my notice that Special Leave Petition filed against the above said judgment as SLP(C) No.3976 of 2010 has already been admitted by the Hon'ble Supreme Court and an interim stay was granted against operation of the judgment of the Division Bench. This being the position, I am of the view that the authorities of the Income Tax Department concerned are not justified in proceeding with issuing similar notices to the petitioners herein, till the issue is finally settled by the apex court. 4. Under the above mentioned circumstances, these writ petitions are allowed and the respondents concerned are directed to keep in abeyance all further steps pursuant to the notices issued under Section 133(6) of the Income Tax Act, for the time being. It is made clear that steps can be pursued only subject to final outcome of the matter now W.P(C) Nos.35416/2010, 35417/2010, 35418/2010, 35431/2010 & 35465/2010 3 pending before the Hon'ble Supreme Court in S.L.P(C) No.3976 of 2010 and connected cases. Sd/- C.K.ABDUL REHIM JUDGE //True Copy// P.A to Judge ab "