THE PERUMANNA KLARI SERVICE CO-OP. BANK LTD. V. THE INCOME TAX OFFICER (TDS)

WP(C)/6019/2012

AI Insights

The case involves The Perumannaklari Service Co-operative Bank Ltd, which is a primary agricultural credit society, challenging a notice issued by the Income Tax Officer (TDS) under Section 194A of the Income Tax Act, requiring details of interest payments to non-members exceeding `10,000. The bank contended that it was exempt from these obligations under Section 194A(3)(vii)(a) of the Income Tax Act. The court found that the bank did not raise this specific contention in its initial reply to the notice and thus, directed that the issue be first addressed by the 1st respondent before any judicial review.

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 699302 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 12-03-2012
• Assessment Year: misc
• Other Referred Cases: SLP No.3976 of 2010
• Laws Referred To: Income Tax Act, Kerala Co-operative Societies Act
• Result in Favour of: Partly Allowed
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH; GOVERNMENT PLEADER
• Assessee Lawyers: V G ARUN; T R HARIKUMAR
• Keywords: Co-operative Bank; Exemption; Income Tax; Interest payment; TDS
• Section: 194A; 194A(3)(vii)(a)

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR.JUSTICE ANTONY DOMINIC MONDAY, THE 12TH DAY OF MARCH 2012/22ND PHALGUNA 1933 WP(C).No. 6019 of 2012 (B) -------------------------------------- PETITIONER: ------------------- THE PERUMANNA KLARI SERVICE CO-OPERATIVE BANK LTD NO.F.770., REPRESENTED BY ITS SECRETARY-IN-CHARGE, KUTTIPPALA P.O., MALAPPURAM DISTRICT-676 501. BY ADVS.SRI.V.G.ARUN, SRI.T.R.HARIKUMAR. RESPONDENTS: ------------------------ 1. THE INCOME TAX OFFICER (TDS), OFFICE OF THE INCOME TAX OFFICER (TDS), AAYAKAR BHAVAN, NORTH BLOCK, KOZHIKODE-673 001. 2. THE COMMISSIONER OF INCOME TAX (CIB), I.S.S.PRESS ROAD, COCHIN, ERNAKULAM DISTRICT-682 018. 3. THE REGISTRAR OF CO-OPERATIVE SOCIETIES, THIRUVANANTHAPURAM-695 001. 4. THE STATE OF KERALA, REPRESENTED BY THE SECRETARY TO GOVERNMENT, CO-OPERATION (C) DEPARTMENT, GOVERNMENT SECRETARIAT, THIRUVANANTHAPURAM-695 001. R1 & R2 BY SRI.JOSE JOSEPH, S.C, R3 & R4 BY GOVERNMENT PLEADER. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 12-03-2012, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C).NO.6019/2012-B: APPENDIX PETITIONER'S EXHIBITS:- EXHIBIT-P1. TRUE COPY OF THE RELAVANT PAGES OF THE REGISTERED BYE-LAWS OF THE SOCIETY. EXHIBIT-P2. TRUE COPY OF THE NOTICE NO.ITO/TDS/CLT/CO OP-INT/2011- 2012/M-61 DATED 09.02.2012 ISSUED BY THE FIRST RESPONDENT. EXHIBIT-P3. TRUE COPY OF THE LETTER DATED 22.02.2012 SUBMITTED BY THE PETITIONER BEFORE THE FIRST RESPONDENT. EXHIBIT-P4. TRUE COPY OF THE ORDER IN SLP NO.3976 OF 2010 OF THE HON'BLE SUPREME COURT DATED 15.02.2010. RESPONDENTS' EXHIBITS:- NIL. //TRUE COPY// P.A. TO JUDGE Prv. ANTONY DOMINIC, J. ================ W.P.(C) NO. 6019 OF 2012 =================== Dated this the 12th day of March, 2012 J U D G M E N T Petitioner says that it is a primary agricultural credit society incorporated under the provisions of the Kerala Co-operative Societies Act. They were issued Ext.P2 notice calling upon them to furnish details of cases where payment of interest to non- members exceeded `10,000. This according to the respondent was the liability under Section 194A of the Income Tax Act. On receipt of the notice, petitioner says that, on compulsion, it made Ext.P3 reply seeking time to comply with Ext.P2 notice. On that notice, 1st respondent made an endorsement, asking the petitioner to comply with Ext.P2. It is thereafter that this writ petition has been filed contending that in view of the provisions contained under Section 194A (3) vii (a) of the Income Tax Act, it is exempted from the obligations under Section 194A. 2. Having heard the learned counsel for the petitioner and also the learned standing counsel appearing for the respondents, I am of the view that if the petitioner had such a contention, it was for them to have raised it before the 1st WPC.No.6019/12 :2 : respondent and thereupon, it is for the 1st respondent to adjudicate on the same. Admittedly, in Ext.P3, the petitioner did not raise such contention and therefore, I see no reason why this contention should be entertained by this Court. 3. Accordingly, I dispose of this writ petition with the following directions:- (1) That it will be open to the petitioner to raise the contention regarding the inapplicability of Section 194A of the Income tax Act before the 1st respondent. Such objection shall be filed within two weeks from today. (2) It is directed that if such an objection is raised, 1st respondent shall decide on the same with notice to the petitioner. (3) It is also directed that subject to the petitioner filing an objection as above, until a decision is taken on the objection, further proceedings pursuant to Ext.P2 shall not be proceeded with. (4) Petitioner shall produce a copy of this judgment along with a copy of the writ petition before the 1st respondent for compliance. ANTONY DOMINIC, JUDGE Rp "