Wp(C)/6019/2012 Of The Perumanna Klari Service Co-Op. Bank Ltd v. The Income Tax Officer (Tds)

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. AAYAKAR BHAVAN, NORTH BLOCK, KOZHIKODE-673 001. 2. THE COMMISSIONER OF INCOME TAX (CIB), I.S.S.PRESS ROAD, COCHIN, ERNAKULAM DISTRICT-682 018. I.S.S.PRESS ROAD, COCHIN, ERNAKULAM DISTRICT-682 018. 3. THE REGISTRAR OF CO-OPERATIVE SOCIETIES, THIRUVANANTHAPURAM-695 001. THIRUVANANTHAPURAM-695 001. 4. THE STATE OF KERALA, REPRESENTED BY THE SECRETARY TO GOVERNMENT, CO-OPERATION (C) DEPARTMENT, 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.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.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. SUPREME COURT DATED 15.02.2010. RESPONDENTS' EXHIBITS:- NIL. //TRUE COPY// P.A. TO JUDGE ANTONY DOMINIC, J. ================W.P.(C) NO. 6019 OF 2012 =================== Dated this the 12[th] day of March, 2012 J U D G M E N T Petitioner says that it is a primary agricultural credit societyincorporated under the provisions of the Kerala Co-operativeSocieties Act. They were issued Ext.P2 notice calling upon themto furnish details of cases where payment of interest to non-members exceeded `10,000. This according to the respondentwas the liability under Section 194A of the Income Tax Act. Onreceipt of the notice, petitioner says that, on compulsion, it madeExt.P3 reply seeking time to comply with Ext.P2 notice. On thatnotice, 1[st] respondent made an endorsement, asking thepetitioner to comply with Ext.P2. It is thereafter that this writpetition has been filed contending that in view of the provisionscontained under Section 194A (3) vii (a) of the Income Tax Act, itis exempted from the obligations under Section 194A. 2.Having heard the learned counsel for the petitionerand also the learned standing counsel appearing for therespondents, I am of the view that if the petitioner had such acontention, it was for them to have raised it before the 1[st] respondent and thereupon, it is for the 1[st] respondent toadjudicate on the same. Admittedly, in Ext.P3, the petitioner didnot raise such contention and therefore, I see no reason why thiscontention should be entertained by this Court. 3.Accordingly, I dispose of this writ petition with thefollowing directions:- (1)That it will be open to the petitioner to raise thecontention regarding the inapplicability of Section 194A of theIncome tax Act before the 1[st] respondent. Such objection shall befiled within two weeks from today. respondent and thereupon, it is for the 1[st] respondent toadjudicate on the same. Admittedly, in Ext.P3, the petitioner didnot raise such contention and therefore, I see no reason why thiscontention should be entertained by this Court. 3.Accordingly, I dispose of this writ petition with thefollowing directions:- (1)That it will be open to the petitioner to raise thecontention regarding the inapplicability of Section 194A of theIncome tax Act before the 1[st] respondent. Such objection shall befiled within two weeks from today. (2)It is directed that if such an objection is raised, 1[st]respondent shall decide on the same with notice to the petitioner. (3)It is also directed that subject to the petitioner filing anobjection as above, until a decision is taken on the objection,further proceedings pursuant to Ext.P2 shall not be proceededwith. (4)Petitioner shall produce a copy of this judgment alongwith a copy of the writ petition before the 1[st] respondent forcompliance. ANTONY DOMINIC, JUDGE