Rp/1318/2008 Of Kerala Toddy Workers Welfare Fund Board v. Commissioner Of Income Tax,Tvpm.& Anr

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR FRIDAY, THE 12TH DECEMBER 2008 / 21ST AGRAHAYANA 1930 RP.No. 1318 of 2008(D) ---------------------- AGAINST THE JUDGEMENT/ORDER IN OP.2131/2003 Dated 13/06/2008 .................... REVIEW PETITIONER(S): ---------------------- KERALA TODDY WORKERS WELFARE FUND BOARD, THIRUVANANTHAPURAM. REPRESENTED BY ITS CHIEF WELFARE FUND INSPECTOR. BY ADV. SRI.S.ARUN RAJ RESPONDENT(S): --------------- 1. THE COMMISSIONER OF INCOME TAX, THIRUVANANTHAPURAM. 2. INCOME TAX OFFICER (TDS), AYAKAR BHAVAN, KOWDIAR, THIRUVANANTHAPURAM. BY SC SRI. JOSE JOSEPH THIS REVIEW PETITION HAVING COME UP FOR ADMISSION ON 12/12/2008, ALONG WITH RP NO. 1314 OF 2008 THE COURT ON THE SAME DAY PASSED THE FOLLOWING: C.N.RAMACHANDRAN NAIR, J. ....................................................................R.P. No.1318 of 2008 in O.P. No.2131 of 2003 &R.P. No.1314 of 2008 in O.P. No.2920 of 2003....................................................................Dated this the 12th day of December, 2008. ORDER The W.Ps. were filed for a declaration that petitioner is entitled toreceive interest on deposits from Banks/Treasuries without deduction of taxat source. This court directed the State Government to take up the matterwith the Central Board for exemption. Such a direction was issued becauseno exemption order or Notification was produced in court. Reviewpetitioner has now produced Annexure-B which is the Notification issuedby the Central Government, Department of Revenue and Banking (RevenueWing) granting exemption from payment of tax on interest earnings of thepetitioner. Standing Counsel for the Income Tax Department submittedthat the Notification relied on is very old and it's applicability in petitioner'scase is a matter to be considered. In the circumstances, Review Petitionsare disposed of directing the second respondent to verify Annexure-B and ifit applies to the petitioner, certificate should be issued to the petitionerdeclaring their eligibility for exemption for receiving interest withoutdeduction of tax for them to produce it before the Bank/Treasury. If theofficer maintains the view that Annexure-B certificate is not applicable or not in force or for any other reason petitioner is not entitled to benefit, he should give notice and hear the petitioner and pass orders. The officer willpass orders within a month from now and in between, the payer-Banks aredirected to retain the tax portion of the interest with them without depositingthe same to the Department. Issue copy today itself. pms C.N.RAMACHANDRAN NAIRJudge