Wp/13281/2014 Of The Coimbatore District v. The Income Tax Officer

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 08.05.2014 CORAM THE HONOURABLE MR. JUSTICE R.SUDHAKAR Writ Petition Nos.13281 to 13287 of 2014and M.P.Nos.1 (7 M.Ps.) of 2014 W.P.No.13281 of 2014 to 13287/2014 The Coimbatore District Central Co-operative Bank Limited,Krishnapuram Branch,Rep. By its Manager,Mr.S.JayachandranS/o.P.Subramanianhaving office at Sugar MillsKrishnapuram 642 111Coimbatore District ... Petitioner in all WPS The Income Tax Officer,TDS Ward 1(5),No.63, Race Course Road,3[rd] Floor, Annexe Building,Coimbatore – 641 018.. Respondent in all WPs Prayer in WP No.13281 to 13287/2014:Writ Petition filed underArticle 226 of Constitution of India praying to issue a Writ ofCertiorari to call for the records pertaining to the impugned orderpassed by the respondent u/s 201(1) and 201(1A) of the Income TaxAct, 1961 vide File No.CMBT04819D/F.Y.2007-08, 2008-09,2009-10,2010-11,2011-12,2012-13,2013-14 respectively dated 30.03.2014 for theAssessmentYear2008-2009,2009-2010,2010-2011,2011-2012,2012-2013,2013-2014,2014-2015 respectively and to quash the same. For Petitioner :Mr.K.RaviFor Respondent :Mr.Pramod Kumar Chopra Standing Counsel for Income Tax Dept., These Writ Petitions have been filed by the Coimbatore DistrictCentral Co-operative Bank Limited, Krishnapuram Branch to call forthe records pertaining to the impugned orders passed by the https://hcservices.ecourts.gov.in/hcservices/ respondent u/s 201(1) and 201(1A) of the Income Tax Act, 1961relating to the assessment years 2008-09 to 2014-15 and to quash thesame. 3. The assessee deductor is in the business of banking. When asurvey was conducted in the business premises of the bank on14.11.2013 by the Deputy Commissioner of Income Tax, TDS Circle,Coimbatore it was found that the assessee was not deducting tax atsource on the interest paid to the depositors. Hence a notice underSection 131(1A) of the Income Tax Act, 1961 was issued on 24.03.2014calling upon the petitioner to furnish branch wise details ofdeposits attracting TDS provisions. Since the assessee could notproduce the details as called for by the Department, based on thedata available with the Department, the assessment orders have beenpassed for various assessment years and consequently the assessmentwas made in terms of Section 201(1) and 201(A) of the Income Tax Act,1961. 4. Learned counsel appearing for the petitioner submitted thatthe Co-operative Banks are exempted from making tax deduction atsource in terms of Section 194A (3)(v) of the Income Tax Act, 1961.He further submitted that the Authority declined to accept the pleaof the assessee and passed the assessment orders demanding tax andinterest relating to the assessment years 2008-09 to 2014-15 and thatorder is now under challenge in these batch of writ petitions. 5. Learned Standing counsel appearing for the Income TaxDepartment submitted that the petitioner has got an appeal remedyunder Section 246A of the Income Tax Act, 1961 and without exhaustingthe said provision, the petitioner has come before this Court by wayof these writ petitions. 6. Considering the facts and law, the plea of the petitionerthat the impugned assessment orders and the demand notice have to beset aside cannot be countenanced as the Act specifically provides anappeal remedy and the same has to be exhausted first by thepetitioner before approaching this Court under Article 226 of theConstitution of India. Hence, the writ petitions at this stage arenot maintainable and the same are dismissed. However, liberty isgiven to the petitioner to file an appeal before the appropriateauthority as against the impugned orders within a period of thirtydays' from today. On such appeal being filed, the authority shalldecide the same on merits and in accordance with law withoutrejecting it, only on the ground of limitation. 6. Considering the facts and law, the plea of the petitionerthat the impugned assessment orders and the demand notice have to beset aside cannot be countenanced as the Act specifically provides anappeal remedy and the same has to be exhausted first by thepetitioner before approaching this Court under Article 226 of theConstitution of India. Hence, the writ petitions at this stage arenot maintainable and the same are dismissed. However, liberty isgiven to the petitioner to file an appeal before the appropriateauthority as against the impugned orders within a period of thirtydays' from today. On such appeal being filed, the authority shalldecide the same on merits and in accordance with law withoutrejecting it, only on the ground of limitation. 7. With the above direction, these writ petitions aredismissed. Consequently connected miscellaneous petitions areclosed. No costs. Sd/-Vacation Officer /True Copy/Sub Asst.Registrar vj2ToThe Income Tax Officer,TDS Ward 1(5),No.63, Race Course Road,3[rd] Floor, Annexe Building,Coimbatore – 641 018+7ccs to Mr.K.Ravi, Advocate Sr 21298+1cc to Mr.T.Pramodkumar Copda Advocate Sr 21377AK(CO)km/13.5. W.P.Nos.13281 to 13287 of 2014