| Case ID |
1aa95ccd-0e1f-4fce-ba96-06262b759a61 |
| Body |
View case body. Login to View |
| Case Number |
W.A. NOS. 269,271,274,275,287,288,304,305,306,308, |
| Decision Date |
Mar 31, 2014 |
| Hearing Date |
Mar 31, 2014 |
| Decision |
The Kerala High Court dismissed the appeals filed by various co-operative societies against the common judgment of a single judge dated December 17, 2013. The court upheld the authority of the Director of Income-tax (Intelligence) to issue notices under section 133(6) of the Income-tax Act, requiring the societies to furnish information about cash deposits. The court noted that the information sought was general and not specific to any individual, thereby affirming the legality of the notices issued. The court emphasized that the powers under section 133(6) of the Income-tax Act were intended for general inquiries and surveys to identify persons likely to have taxable income, and thus were justified in this context. |
| Summary |
In the landmark case of Kodur Service Co-Operative Bank Ltd. v. Director of Income Tax (Intelligence), the Kerala High Court addressed the legality of notices issued under section 133(6) of the Income-tax Act. The court analyzed the powers granted to income-tax authorities to call for information relevant to tax compliance. The co-operative societies, which are established under the Kerala Co-operative Societies Act, contended that the notices were arbitrary and beyond the jurisdiction of income-tax authorities. However, the court clarified that the purpose of the notices was to conduct a general survey and gather information on cash deposits exceeding five lakhs over the last three years. This case underscores the balance between tax compliance and the operational autonomy of co-operative societies, establishing a precedent for future inquiries into financial activities. Keywords such as 'Income-tax Act', 'co-operative societies', and 'tax compliance' are crucial for understanding the implications of this ruling. |
| Court |
Kerala High Court
|
| Entities Involved |
Kodur Service Co-Operative Bank Ltd.,
Director of Income Tax (Intelligence)
|
| Judges |
Dr. Manjula Chellur, C.J.,
A.M. Shaffique, J
|
| Lawyers |
O.D. Sivadas,
P.K.R. Menon,
Jose Joseph
|
| Petitioners |
Kodur Service Co-Operative Bank Ltd.
|
| Respondents |
Director of Income Tax (Intelligence)
|
| Citations |
2014 SLD 1956,
(2014) 367 ITR 22
|
| Other Citations |
Kathiroor Service Co-operative Bank Ltd. v. CIT (CIB) [2014] 360 ITR 243,
Dr. N. S. D. Raju v. Director-General of Income-tax (Investigation) [2006] 283 ITR 154,
Karnataka Bank Ltd. v. Secretary, Government of India [2002] 255 ITR 508
|
| Laws Involved |
Income-tax Act,
Kerala Co-operative Societies Act
|
| Sections |
133(6)
|