Delhi High Court
Panchmahal District Cooperative ... vs Union Of India & Ors. on 17 September, 2020
$~
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ W.P. (C) 5919/2020 & C.M.No.21403/2020
PANCHMAHAL DISTRICT COOPERATIVE
MILK PRODUCERS UNION LTD. & ORS. ..... Petitioners
Through: Mr.Ramesh P Bhatt, Sr.Advocate
with Mr.Malak Bhatt, Ms.Devanshi
Singh and Ms.Chandni Ghatak,
Advocates.
versus
UNION OF INDIA & ORS. ...... Respondents
Through: Mr.Zoheb Hossain, Sr.Standing
counsel for Income Tax Department
with Mr.Kalrav Mehrotra, Advocate.
% Date of Decision: 17th September, 2020
CORAM:
HON'BLE MR. JUSTICE MANMOHAN
HON'BLE MR. JUSTICE SANJEEV NARULA
JUDGMENT
MANMOHAN, J: (Oral)
1. The petition has been heard by way of video conferencing.
2. On the last date of hearing, this Court had passed the following
order:-
" C.M.Nos.21404-21406/2020
Exemption allowed, subject to all just exceptions.
Accordingly, the application stands disposed of.
W.P.(C) No.5919/2020 & C.M.No.21403/2020
The petition has been listed before this Bench by the
Registry in view of the urgency expressed therein. The same has
been heard by way of video conferencing.
Present writ petition has been filed challenging Section
194A of the Income Tax Act, 1961 (hereinafter referred to as the
„Act‟) inserted vide Finance Act, 2020 with effect from 01 st July,
2020 to the extent that the provision has been made applicable to
Dairy Co-operative Societies (DCS). In the alternative, the
petitioners pray for a direction to the respondents to
declare/clarify that the amendment to Section 194A of the Act
inserted vide Finance Act, 2020 is not applicable to the DCS.
Learned counsel for the respondents raises a preliminary
objection on the ground that this Court has no territorial
jurisdiction to entertain and decide the present writ petition.
Learned counsel for the respondents is directed to obtain
instructions as to whether the respondent-CBDT is willing to
dispose of the petitioners‟ representation dated 20 th July, 2020 by
way of a reasoned order in a time bound manner.
At the request of learned counsel for the respondents,
adjourned to 17th September, 2020.
The order be uploaded on the website forthwith. Copy of the
order be also forwarded to the learned counsel through e-mail.
3. In pursuance to the aforesaid order, the respondent-Central Board of
Direct Taxes (CBDT) has filed a short affidavit. The relevant portion of the
said affidavit reads as under:-
"4. In this regard, it is respectfully submitted that while the
powers to address the constitutional validity of the amended
section 194A of the Act vests with the Courts, however, within
the powers delegated to it under Section 119 of the Act,
CBDT is willing to dispose off the Petitioner's representation
within a period of eight weeks subject to furnishing of
necessary reply by it, if called by CBDT."
4. Accordingly, the present writ petition and pending application are
disposed of with a direction to the CBDT to decide the petitioners'
representation dated 20th July, 2020 after giving an opportunity of hearing to
the petitioners, by way of a reasoned order within eight weeks. Petitioners
are directed to file any clarification/reply/document asked for by the CBDT.
5. The order be uploaded on the website forthwith. Copy of the order be
also forwarded to the learned counsel through e-mail.
MANMOHAN, J
SANJEEV NARULA, J
SEPTEMBER 17, 2020
KA
