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2011 Supreme(Online)(KER) 18263
HIGH COURT OF KERALA
S. SIRI JAGAN, J
THE MURIKKASSERY SERVICE CO-OP BANK LTD – Appellant
Versus
THE COMMISSI0ONER OF INCOME TAXCIB – Respondent
WRIT PETITION (CIVIL) 23594/2011
The authority of tax departments to collect information is subject to prevailing judicial directives, including stays issued by higher courts.
Headnote:
IncomeTax - Co-operative Bank - W.A. No.290/2010, W.A. No.2553 of 2009 - The judgment addresses the authority of the Income Tax Department to demand information from Co-operative Banks, contingent on Supreme Court's stay on similar orders.
Fact of the Case:
The petitioner, a Co-operative Bank, is challenging the Income Tax Department's request for customer information. A related appeal is pending before the Supreme Court, leading to a prior Division Bench judgment on the matter.
Issues: Whether the Income Tax Department is entitled to demand customer information from the Co-operative Bank given the stay issued by the Supreme Court.
Ratio Decidendi: The court determines that the outcome of the writ petition is contingent upon the Supreme Court's final judgment in related matters, thereby limiting action by the Income Tax Department until then.
Final Decision: The writ petition is disposed of in accordance with the prior judgment.
J U D G M E N T
The petitioner is a Co-operative Bank. The Income Tax Department has sought certain information from the bank relating to some of their customers. That is under challenge in this writ petition. In respect of identical matters an appeal is pending before the Hon'ble Supreme Court. In the light of the same, a Division Bench of this Court has passed a judgment in W.A. No.290/2010 . The said judgment reads as follows:
“This writ appeal is filed against the judgment of the learned Single Judge disposing the appellant's challenge against the details called for by the Income Tax Department, following the Division Bench judgment of this Court in W.A. No.2553 of 2009 and connected cases. Even though the Division Bench upheld the similar notices and declared entitlement of the Department to call for details from the Co- operative Banks, the Honourable Supreme Court has granted stay against operation of the judgment.
In the circumstances, we dispose of this writ appeal with a direction to the respondents to proceed against the appellant based on fresh orders or final judgment of the Supreme Court in the pending matters. In other words, the judgment of the Supreme Court in the pending cases will be followed in the case of the appellant as well without insisting the parties to take up the matter to the Supreme Court.”
W.P.(C)No.23594 of 2011 Therefore, I am of opinion that, this writ petition also can be disposed of in terms of that judgment. Accordingly, this writ petition is disposed of following that judgment.
