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2013 Supreme(Online)(KER) 42188
HIGH COURT OF KERALA
V. Chitambares, J
ALANALLUR SERVICE CO-OPERATIVE BANK LTD NO F – Appellant
Versus
THE DIRECTOR OF INCOME TAX Advocate - SRI P K R MENON,SENIOR COUNSEL, GOI(TAXES), SRI P K R MENONSR COUNSEL GOITAXES,SRI JOSE JOSEPH, SC, FOR INCOME TAX – Respondent
WRIT PETITION (CIVIL) 25368/2013
Co-operative banks must comply with information requests from the Income Tax Department under Section 133(6) of the Income Tax Act to ensure transparency.
Headnote:
Income Tax - Co-operative Banks - Income Tax Act, 1961 - Section 133(6) - The court upheld the authority of the Income Tax Department to seek information from co-operative banks to ensure transparency in transactions, emphasizing compliance with Section 133(6).
Fact of the Case:
Co-operative banks challenged notices issued by the Income Tax Department, asserting a lack of obligation to provide requested information under Section 133(6) of the Income Tax Act, 1961.
Finding of the Court:
The court affirmed the Income Tax Department’s authority to issue notices for information disclosure, citing the need for transparency in banking transactions as vital.
Issues: Whether co-operative banks are obliged to comply with information requests from the Income Tax Department under Section 133(6) of the Income Tax Act, 1961.
Ratio Decidendi: The essential principle established is that co-operative banks must provide requested information to the Income Tax Department to promote transparency and comply with statutory obligations.
Final Decision: The writ petitions are dismissed.
J U D G M E N T
The challenge to similar notices issued by the Income Tax Department has been turned down by judgment dated 12-12-2013 in W.P(C)No.30486/2013 and connected cases. The learned Single Judge has followed the decision of the Supreme Court in Kathiroor Service Co-operative Bank Ltd. and Others vs. Commissioner of Income Tax and Others [(2013) 263 CTR (SC) 129].
2. The Supreme Court has affirmed the decision of the Division Bench of this Court inChavassery Service Co- operative Bank Ltd. and Others vs. Income Tax Officer and Others [(2010) 231 CTR 404 (Ker)]. The opinion of the Income Tax Officer is manifest by his conduct in issuing the notices under Section 133 (6) of the Income Tax Act, 1961 .[See. Dolgobinda Paricha vs. Nimai Charan Misra and Others ( AIR 1959 SC 914 )].
3. The Co-operative Banks should not feel shy to furnish W.P.(C)Nos.25368 and con.cases. 2 the information sought by the Income Tax Department in order to ensure that the transactions of the depositors are wholly transparent. The petitioners are however free to move the authority for granting extension of time to furnish the particulars which shall be dealt with in accordance with law.
The writ petitions are dismissed.
V.CHITAMBARESH JUDGE smm
