Madras High Court
Erode Mavatta Valamana Thodakka vs The Managing Director / ... on 18 July, 2023
W.P.No.6233 of 2020 etc., batch
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 18.07.2023
CORAM :
THE HONOURABLE MR.JUSTICE R.SURESH KUMAR
W.P.Nos.6233, 7199, 7588, 7734, 9002, 11786 of 2020, and
W.P.Nos.14531 and 16638 of 2022
and W.M.P.Nos.7335, 7336, 8601, 8602, 8924, 16036, 16037, 9093,
9094, 10943, 10945, 10947, 14497, 14498 of 2020, &
W.M.P.Nos.13723, 13724, 15928, 15929, 15932 of 2022
and
W.P(MD) Nos.15845, 15846, 15847, 15848, 15849, 15850, 15851,
15852, 15853, 15854, 15855, 17651, 17652, 17653, 17654, 17655,
17656, 17657, 17658, 17659, 17660, 17661, 17662, 17663, 17664,
17665, 17666,18682, 18683, 18684, 18685, 18686, 18687, 18688,
18689, 18690, 18691, 18692, 18693, 18694, 18695, 18696, 18697,
18698, 18699, 18700, 18701, 20092, 20093, 20094, 20095, 20096,
20097, 20098, 21361, 21362, 21363, 21364, 21365, 21366, 21367,
21368, 21369, 21370, 21371, 21372, 21373, 21374, 21375, 22249,
22250, 22251, 22252, 22253, 22914, 22915, 22916, 22917, 22918,
22919, 22920, 22921, 22922, 22923, 22924 of 2021, and W.P.Nos. 772,
773, 774, 775, 776, 777, 778, 779, 780, 781, 782, 783, 784, 785, 2514,
2566, 2567, 2691, 2692, 2693, 2694, 2695, 2696, 2697, 2698, 2699,
2700, 2701, 2702, 2703, 2704, 2705, 2706, 3230, 3231, 3232, 3233,
3721, 3722, 3723, 3724, 3725, 3726, 3727, 3728, 3729, 3730, 3765,
3766, 4087, 6637, 6674, 6675, 7405, 7406, 7407, 7408, 7409, 7410,
10769, 11739, 11740, 11741, 11742, 11744, 11743, 11746, 11745,
11747, 11748, 11749, 11750, 11751, 11752, 11753, 11754, 11755,
11756, 11757, 11758, 11759, 11760, 11761, 11762, 11763, 11764,
11765, 11767, 11766, 11768, 13064, 13065, 13066, 13067, 13068,
13069, 13070, 13077, 13078, 13071, 13072, 13079, 13073, 13074,
13075, 13076, 13080, 13081, 13144, 13979, 13980, 14040, 14041,
14640, 14641, 14642, 14643, 14645, 14644, 14646, 14647, 14648,
14649, 15154, 15155, 15156, 15157, 15158, 15343, 15344, 15345,
15346, 15347, 15348, 15861, 15862, 15863, 15864, 15865, 15866,
16245, 16246, 16836, 16837, 16838, 16839, 16840, 16841, 16842,
16843, 16844, 16845, 16846, 16847, 16848, 16849, 16850, 16851,
16852, 16853, 16854, 16855, 16856, 16857, 16858, 16859, 16860,
1 / 24
https://www.mhc.tn.gov.in/judis
W.P.No.6233 of 2020 etc., batch
16861, 16862, 16863, 16864, 16865, 16866, 16867, 17103, 17104,
17105, 17106, 17107, 17108, 17329, 17330, 17381, 17382, 18719,
18720, 18721, 18722, 18723, 18724, 18725, 18726, 18727, 18728,
18729, 18730, 18731, 18732, 18733, 18734, 18735, 18736, 18737,
18738, 18739, 18740, 18741, 18742, 18743, 18744, 18745, 18746,
18747, 18748, 18750, 18749, 18856, 18857, 18858, 18859, 18860,
18861, 18878, 18880, 18881, 18882, 18883, 18983, 19270, 19317,
19882, 19883, 19884, 20544, 21321, 21322, 21323, 21324, 21325,
21326, 21327, 21328, 21329, 21330, 21331, 21332, 21333, 21334,
21335, 21336, 21438, 21654, 21655, 22402, 22403, 22404, 22405,
22406, 22407, 22408, 22409, 22410, 22411, 22412, 22413, 22414,
22415, 22416, 22417, 23640, 23641, 23642, 23643, 23644, 23645,
23646, 23647, 23648, 23649, 23650, 23651, 23682, 23683, 23684,
23685, 23686, 23687, 23688, 23689, 23783, 23784, 23785, 23786,
23787, 23915, 23934, 23935, 23933, 23932, 23931, 23930, 23929,
23928, 23927, 23926, 23925, 23924, 23923, 23922, 23921, 23920,
23919, 23918, 23917, 23916, 24144, 24145, 24146, 24426, 24427,
24428, 24429, 24511, 24646, 25273, 25274, 25275, 25276, 25277,
25278, 25279, 25280, 25409, 25410, 25766, 25767, 25768, 25769,
25770, 25771, 25772, 25773, 25774, 25775, 25780, 25776, 25777,
25781, 25778, 25779, 25782, 25783, 25784, 25785, 25786, 25787,
25788, 25789, 25924, 25925, 25926, 25927, 25928, 25929, 25930,
25931, 25932, 26518, 26519, 26520, 26521, 26522, 26523, 26641,
26642, 26643, 26644, 26645, 26646, 27120, 27121, 27122, 27123,
27124, 27125, 27126, 27127, 27128, 27129, 27130, 27131, 27283 and
27346 of 2022
and W.M.P(MD) Nos.12749, 12759, 12755, 12754, 12750, 12760,
12763, 12764, 12766, 12768, 12757, 14533, 14536, 14538, 14540,
14543, 14559, 14560, 14553, 14562, 14564, 14566, 14571, 14572,
14534, 14541, 14542, 14535, 14537, 14539, 14556, 14554, 14550,
14552, 14544, 14548, 14546, 14547, 14545, 14563, 14555, 14551,
14549, 15393, 15395, 15399, 15429, 15397, 15407, 15419, 15401,
15405, 15412, 15415, 15409, 15421, 15404, 15425, 15423, 15417,
15427, 15431, 15414, 15410, 15392, 15394, 15398, 15408, 15396,
15416, 15400, 15403, 15406, 15411, 15402, 15424, 15426, 15428,
15430, 15413, 15418, 15422, 15420, 16789, 16788, 16793, 16790,
16796, 16798, 16797, 16799, 16801, 16802, 16791, 16794, 16792,
16795, 17918, 17923, 17929, 17920, 17936, 17951, 17934, 17942,
17949, 17940, 17947, 17932, 17927, 17935, 17939, 17917, 17921,
17926, 17919, 17933, 17950, 17930, 17941, 17943, 17938, 17946,
17928, 17925, 17931, 17937, 18784, 18788, 18791, 18790, 18797,
2 / 24
https://www.mhc.tn.gov.in/judis
W.P.No.6233 of 2020 etc., batch
18785, 18789, 18792, 18794, 18798, 19390, 19394, 19383, 19386,
19379, 19381, 19391, 19389, 19388, 19402, 19404, 19397, 19398,
19396, 19399, 19384, 19385, 19393, 19392, 19382, 19395, 19387 of
2021, and W.M.P.Nos. 610, 608, 614, 613, 622, 627, 617, 621, 629,
630, 632, 634, 615, 616, 618, 620, 623, 624, 626, 628, 611, 607, 625,
619, 633, 631, 639, 638, 2212, 2213, 2261, 2262, 2258, 2259, 2374,
2383, 2376, 2386, 2384, 2390, 2378, 2392, 2396, 2398, 2388, 2402,
2382, 2395, 2400, 2406, 2373, 2380, 2375, 2385, 2381, 2389, 2377,
2391, 2394, 2397, 2387, 2401, 2379, 2393, 2399, 2404, 2827, 2826,
2834, 2830, 2828, 2829, 2833, 2831, 3238, 3241, 3243, 3245, 3242,
3246, 3247, 3248, 3249, 3251, 3252, 3253, 3255, 3256, 3237, 3240,
3250, 3254, 3239, 3244, 3276, 3277, 3278, 3279, 3489, 3490, 5123,
5124, 5162, 5165, 5163, 5166, 5618, 5619, 5621, 5622, 5624, 5627,
5625, 5628, 5626, 5629, 5620, 5623, 7768, 7769, 8309, 8310, 8311,
8312, 8313, 8314, 8315, 8316, 8318, 8323, 8320, 8327, 8335, 8321,
8322, 8337, 8330, 8331, 8342, 8343, 8345, 8347, 8317, 8319, 8339,
8341, 8365, 8367, 8326, 8328, 8338, 8340, 8350, 8352, 8325, 8332,
8346, 8349, 8358, 8360, 8366, 8369, 8353, 8355, 8363, 8364, 8329,
8334, 8324, 8333, 8348, 8351, 8356, 8359, 8354, 8361, 8357, 8362,
8336, 8344, 9267, 9270, 9273, 9277, 9283, 9288, 9269, 9272, 9276,
9279, 9280, 9285, 9287, 9294, 9299, 9295, 9298, 9282, 9284, 9301,
9302, 9293, 9289, 9300, 9291, 9275, 9278, 9305, 9307, 9296, 9297,
9281, 9286, 9304, 9303, 9337, 9339, 9271, 9956, 9960, 9964, 9965,
10013, 10014, 10015, 10016, 10443, 10444, 10445, 10446, 10449,
10447, 10452, 10450, 10461, 10455, 10456, 10463, 10462, 10464,
10448, 10451, 10457, 10458, 10453, 10454, 10846, 10847, 10848,
10849, 10852, 10856, 10857, 10858, 10850, 10851, 10981, 10982,
10989, 10991, 10986, 10988, 10994, 10995, 10999, 11000, 11008,
11009, 11432, 11437, 11431, 11435, 11430, 11434, 11438, 11439,
11433, 11436, 11440, 11441, 11738, 11740, 11741, 11742, 12220,
12222, 12230, 12233, 12240, 12244, 12224, 12225, 12258, 12261,
12234, 12237, 12229, 12235, 12241, 12243, 12271, 12276, 12226,
12227, 12245, 12246, 12254, 12256, 12281, 12282, 12247, 12249,
12239, 12242, 12257, 12259, 12267, 12269, 12253, 12255, 12232,
12236, 12277, 12280, 12251, 12252, 12263, 12264, 12265, 12266,
12231, 12238, 12272, 12260, 12274, 12262, 12283, 12284, 12268,
12270, 12273, 12275, 12248, 12250, 12286, 12287, 12278, 12279,
12462, 12467, 12463, 12468, 12466, 12471, 12472, 12473, 12464,
12469, 12465, 12470, 12640, 12641, 12643, 12644, 12659, 12660,
12662, 12663, 13613, 13615, 13616, 13618, 13620, 13622, 13629,
13631, 13638, 13639, 13617, 13619, 13624, 13635, 13637, 13642,
13644, 13650, 13651, 13625, 13627, 13645, 13647, 13657, 13661,
3 / 24
https://www.mhc.tn.gov.in/judis
W.P.No.6233 of 2020 etc., batch
13674, 13676, 13680, 13682, 13634, 13636, 13640, 13641, 13656,
13659, 13665, 13668, 13669, 13671, 13621, 13623, 13630, 13632,
13648, 13649, 13626, 13653, 13654, 13658, 13660, 13666, 13667,
13628, 13633, 13643, 13646, 13652, 13655, 13662, 13664, 13673,
13675, 13670, 13672, 13750, 13751, 13760, 13763, 13754, 13758,
13755, 13759, 13756, 13761, 13757, 13762, 13777, 13780, 13782,
13784, 13779, 13783, 13781, 13785, 13776, 13778, 13858, 13859,
14059, 14060, 14094, 14095, 14473, 14475, 14479, 14477, 14480,
14482, 14882, 14885, 15459, 15460, 15468, 15469, 15471, 15474,
15481, 15482, 15485, 15486, 15461, 15464, 15465, 15467, 15479,
15480, 15463, 15466, 15470, 15472, 15477, 15478, 15475, 15476,
15483, 15484, 15487, 15488, 15502, 15503, 15504, 15505, 15588,
15587, 15790, 15791, 15792, 15793, 16574, 16575, 16582, 16584,
16587, 16588, 16576, 16577, 16578, 16579, 16585, 16586, 16589,
16590, 16593, 16594, 16597, 16598, 16602, 16603, 16607, 16606,
16580, 16581, 16591, 16592, 16599, 16601, 16604, 16605, 16595,
16596, 17712, 17713, 17716, 17717, 17714, 17715, 17722, 17723,
17728, 17729, 17718, 17720, 17726, 17727, 17730, 17732, 17721,
17725, 17733, 17735, 17719, 17724, 17731, 17734, 17763, 17764,
17767, 17769, 17770, 17771, 17766, 17768, 17779, 17780, 17762,
17765, 17772, 17773, 17775, 17776, 17848, 17849, 17846, 17847,
17866, 17865, 17850, 17851, 17859, 17861, 18019, 18020, 18027,
18028, 17996, 17997, 18011, 18012, 18002, 18003, 17995, 17998,
18014, 18017, 18008, 18010, 17992, 17993, 18024, 18026, 18015,
18021, 18000, 18005, 18023, 18025, 18018, 18022, 17999, 18004,
18013, 18016, 18001, 18006, 17989, 17990, 18007, 18009, 17991,
17994, 17987, 17988, 18246, 18247, 18250, 18252, 18255, 18256,
18519, 18521, 18520, 18522, 18523, 18524, 18525, 18526, 18581,
18747, 19358, 19360, 19361, 19364, 19363, 19365, 19359, 19362,
19367, 19368, 19373, 19375, 19369, 19370, 19377, 19378, 19498,
19499, 19501, 19502, 19876, 19877, 19879, 19881, 19882, 19884,
19886, 19889, 19878, 19880, 19883, 19885, 19890, 19891, 19892,
19893, 19887, 19888, 19895, 19897, 19912, 19911, 19919, 19921,
19910, 19913, 19899, 19900, 19904, 19907, 19901, 19902, 19906,
19908, 19903, 19905, 19896, 19898, 19924, 19925, 19920, 19922,
19929, 19926, 19930, 19928, 19931, 19932, 20049, 20050, 20051,
20052, 20061, 20062, 20056, 20059, 20055, 20057, 20060, 20053,
20058, 20064, 20065, 20066, 20067, 20054, 20691, 20693, 20699,
20701, 20703, 20704, 20695, 20698, 20700, 20702, 20694, 20696,
20843, 20844, 20845, 20847, 20846, 20848, 20853, 20854, 20849,
20852, 20850, 20851, 21274, 21275, 21270, 21271, 21278, 21281,
21272, 21273, 21276, 21279, 21292, 21293, 21282, 21283, 21286,
4 / 24
https://www.mhc.tn.gov.in/judis
W.P.No.6233 of 2020 etc., batch
21288, 21277, 21280, 21284, 21285, 21289, 21291, 21287, 21290,
21405, 21406, 21451 & 21452 of 2022, and W.M.P.No.1926 of 2023
W.P.No.6233 of 2020
Erode Mavatta Valamana Thodakka
Velanmai Kotturavu Vangi Paniyalargal
Sangam, Regd.No.401/ERD, Rep.by its
Secretary, R.Gopalakrishnan, S/o Late
Ramasamy, 2nd Floor, Periya Mariamman
Complex, No.110, Nehru Road, Fort
Erode - 638 001. …. Petitioner
-Vs-
1.The Managing Director / Additional Registrar
Erode District Central Cooperative Bank
No.1, Bhavani Main Road, Erode.
2.The Assistant Commissioner of Income Tax
TDS Circle, Coimbatore, Coimbatore District.
3.The Assistant Commissioner of Income Tax
TDS Ward, Tiruppur, Tiruppur District.
4.The State of Tamil Nadu, Rep.by Secretary
to Government, Finance Department.
5.The State of Tamil Nadu, Rep.by Secretary
to Government, Co-operation, Secretariat,
Chennai.
6.The Registrar of Cooperative Societies
No.170, Periyar EVR High Road, Poonamallee
High Road, Kilpauk, Chennai 600 010.
(R4 to R6 suo motu impleaded vide order
dated 16.12.2021 made in W.P.No.6233 of
2020 made by RSKJ …. Respondents
Prayer : Writ Petition under Article 226 of the Constitution of India praying for
5 / 24
https://www.mhc.tn.gov.in/judis
W.P.No.6233 of 2020 etc., batch
the issuance of a Writ of Certiorari calling for the entire records relating to the
impugned order passed by the 1st respondent in his proceedings
Na.Ka.No.006410/2019-20, Kanakku dated 02.03.2020 and quash the same.
------------------
In all Writ Petitions
For Petitioners
In W.P.Nos.6233, 7199, 7588, 7734, Mr.C.Prakasam
9002, 11786, 14531 and 16638 of 2022
In W.P.(MD)Nos.15845, 15846, 15847, Mr.Kalaiselvam V.O.S
15848, 15849, 15850, 15851, 15852,
15853, 15854, 15855, 17651, 17652,
17653, 17654, 17655, 17656, 17657,
17658, 17659, 17660, 17661, 17662,
17663, 17664, 17665, 17666, 18682,
18683, 18684, 18686, 18687, 18688,
18689, 18690, 18691, 18692, 18693,
18694, 18695, 18696, 18697, 18698,
18699, 18700, 18701, 20092, 20093,
20094, 20095, 20096, 20097, 20098,
21361, 21362, 21363, 21364, 21365,
21366, 21637, 21368, 21369, 21370,
21371, 21372, 21373, 21374, 21375,
22249, 22250, 22251, 22252, 22253,
22914, 22915, 22916, 22917, 22918,
22919, 22920, 22921, 22922, 22923
and 22924 of 2021, 772, 773, 774, 775,
776, 777, 778, 779, 780, 781, 782, 783,
784, 785, 2514, 2566, 2567, 2691,
2692, 2693, 2694, 2695, 2696, 2697,
2698, 2699, 2700, 2701, 2702, 2703,
2704, 2705, 2706, 3230, 3231, 3232,
3233, 3721, 3722, 3723, 3724, 3725,
3726, 3727, 3728, 3729, 3730, 3765,
3766, 4087, 6637, 6674, 6675, 7405,
7406, 7407, 7408, 7409, 7410, 11739,
11740, 11741, 11742, 11743, 11744,
6 / 24
https://www.mhc.tn.gov.in/judis
W.P.No.6233 of 2020 etc., batch
11745, 11746, 11747, 11748, 11749,
11750, 11751, 11752, 11753, 11754,
11755, 11756, 11757, 11758, 11759,
11760, 11761, 11762, 11763, 11764,
11765, 11766, 11767, 11768, 13064,
13065, 13066, 13067, 13068, 13069,
13070, 13071, 13072, 13073, 13074,
13075, 13076, 13077, 13078, 13079,
13080, 13081, 13144, 13979, 13980,
14040, 14041, 14640, 14641, 14642,
14643, 14645, 14644, 14646, 14647,
14648, 14649, 15154, 15155, 15156,
15157, 15158, 15343, 15344, 15345,
15346, 15347, 15348, 15861, 15862,
15863, 15864, 15865, 15866, 16245,
16246, 16836, 16837, 16838, 16839,
16840, 16841, 16842, 16843, 16844,
16845, 16846, 16847, 16848, 16849,
16850, 16851, 16852, 16853, 16854,
16855, 16856, 16857, 16858, 16859,
16860, 16861, 16862, 16863, 16864,
16865, 16866, 16867, 17103, 17104,
17105, 17106, 17107, 17108, 17329,
17330, 17381, 17382, 18856, 18857,
18858, 18859, 18860, 18861, 18878,
18880, 18881, 18882, 18883, 18983,
19270, 19317, 19882, 19883, 19884,
20544, 21321, 21322, 21323, 21324,
21325, 21326, 21327, 21328, 21329,
21330, 21331, 21332, 21333, 21334,
21335, 21336, 21438, 21654, 21655,
22402, 22403, 22404, 22405, 22406,
22407, 22408, 22409, 22410, 22411,
22412, 22413, 22414, 22415, 22416,
22417, 23640, 23641, 23642, 23643,
23644, 23645, 23646, 23647, 23648,
23649, 23650, 23651, 23682, 23683,
23684, 23685, 23686, 23687, 23688,
23689, 24144, 24145, 24146, 24511,
24646, 25273, 25274, 25275, 25276,
25277, 25278, 25279, 25280, 25409,
7 / 24
https://www.mhc.tn.gov.in/judis
W.P.No.6233 of 2020 etc., batch
25410, 25766, 25767, 25768, 25769,
25770, 25771, 25772, 25773, 25774,
25775, 25776, 25777, 25781, 25778,
25779, 25782, 25783, 25784, 25785,
25786, 25787, 25788, 25789, 25924,
25925, 25926, 25927, 25928, 25929,
25930, 25931, 25932, 26518, 26519,
26520, 26521, 26522, 26523, 26641,
26642, 26643, 26644, 26645 and 26646
of 2022
In W.P.(MD) Nos.10769 of 2022, 18719, No appearance
18720, 18721, 18722, 18723, 18724,
18725, 18726, 18727, 18728, 18729,
18730, 18731, 18732, 18733, 18734,
18735, 18736, 18737, 18738, 18739,
18740, 18741, 18742, 18743, 18744,
18745, 18746, 18747, 18748, 18750,
18749, 23783, 23784, 23785, 23786,
23787, 23915, 23934, 23935, 23933,
23932, 23931, 23930, 23929, 23928,
23927, 23926, 23925, 23924, 23923,
23922, 23921, 23920, 23919, 23918,
23917, 23916, 24426, 24427, 24428,
24429, 27121, 27122, 27123, 27124,
27125, 27126, 27127, 27128, 27129,
27130, 27131, 27283, and 27346 of
For Respondents
For R1 in W.P.Nos.6233 and 11786 of Mr.L.P.Shanmugasundaram
2020, For R2 in W.P.Nos. 7199, 7588
and 7734 of 2020
For R4 to 6 in W.P.Nos.6233, 7588, and Mr.P.Gurunathan
7734 of 2020, For R3 to R5 in Additional Government Pleader
W.P.Nos. 9002 and 11786 of 2022
For R1 in W.P.No.7199 and 9002 of Dr.B.Ramaswamy
2020, R2 in W.P.No.6233 and 11786 of Senior Central Government Standing
2022 and For R3 in W.P.Nos. 7588 and Counsel
7734 of 2020
8 / 24
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W.P.No.6233 of 2020 etc., batch
In W.P.Nos. 14531 and 16638 of 2022 Dr.B.Ramasamy, Senior Central
Government Standing Counsel - for R1
No appearance - for R2
In W.P.(MD) Nos.15845, 15846, 15847, Dr.B.Ramasamy, Senior Central
15848, 15849, 15850, 15851, 15852, Government Standing Counsel - for R1
15853, 15854, 15855, 17651, 17652,
17653, 17654, 17655, 17656, 17657, Mr.P.Gurunathan
17658, 17659, 17660, 17661, 17662, Additional Government Pleader - for R2
17663, 17664, 17665, 17666,18682,
18683, 18684, 18685, 18686, 18687,
18688, 18689, 18690, 18691, 18692,
18693, 18694, 18695, 18696, 18697,
18698, 18699, 18700, 18701, 20092,
20093, 20094, 20095, 20096, 20097,
20098, 21361, 21362, 21363, 21364,
21365, 21366, 21367, 21368, 21369,
21370, 21371, 21372, 21373, 21374,
21375, 22249, 22250, 22251, 22251,
22253, 22914, 22915, 22916, 22917,
22918, 22919, 22920, 22921, 22922,
22923, 22924 of 2021, 772, 773, 774,
775, 776, 777, 778, 779, 780, 781, 782,
783, 784, 785, 2514, 2566, 2567, 2691,
2692, 2693, 2694, 2695, 2696, 2697,
2698, 2699, 2700, 2701, 2702, 2703,
2704, 2705, 2706, 3230, 3231, 3232,
3233, 3721, 3722, 3723, 3724, 3725,
3726, 3727, 3728, 3729, 3730, 3765,
3766, 4087, 6637, 6674, 6675, 7405,
7406, 7407, 7408, 7409, 7410, 10769,
11739, 11740, 11741, 11742, 11744,
11743, 11746, 11745, 11747, 11748,
11749, 11750, 11751, 11752, 11753,
11754, 11755, 11756, 11757, 11758,
11759, 11760, 11761, 11762, 11763,
11764, 11765, 11767, 11766, 11768,
13064, 13065, 13066, 13067, 13068,
13069, 13070, 13077, 13078, 13071, Dr.B.Ramasamy, Senior Central
13072, 13079, 13073, 13074, 13075, Government Standing Counsel - for R1
13076, 13080, 13081, 13144, 13979,
13980, 14040, 14041, 14640, 14641, Mr.P.Gurunathan
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W.P.No.6233 of 2020 etc., batch
14642, 14643, 14645, 14644, 14646, Additional Government Pleader - for R2
14647, 14648, 14649, 15154, 15155,
15156, 15157, 15158, 15343, 15344,
15345, 15346, 15347, 15348, 15861,
15862, 15863, 15864, 15865, 15866,
16245, 16246, 16836, 16837, 16838,
16839, 16840, 16841, 16842, 16843,
16844, 16845, 16846, 16847, 16848,
16849, 16850, 16851, 16852, 16853,
16854, 16855, 16856, 16857, 16858,
16859, 16860, 16861, 16862, 16863,
16864, 16865, 16866, 16867, 17103,
17104, 17105, 17106, 17107, 17108,
17329, 17330, 17381, 17382, 18719,
18720, 18721, 18722, 18723, 18724,
18725, 18726, 18727, 18728, 18729,
18730, 18731, 18732, 18733, 18734,
18735, 18736, 18737, 18738, 18739,
18740, 18741, 18742, 18743, 18744,
18745, 18746, 18747, 18748, 18750,
18749, 18856, 18857, 18858, 18859,
18860, 18861, 18878, 18880, 18881,
18882, 18883, 18983, 19270, 19317,
19882, 19883, 19884, 20544, 21321,
21322, 21323, 21324, 21325, 21326,
21327, 21328, 21329, 21330, 21331,
21332, 21333, 21334, 21335, 21336,
21438, 21654, 21655, 22402, 22403,
22404, 22405, 22406, 22407, 22408,
22409, 22410, 22411, 22412, 22413,
22414, 22415, 22416, 22417, 23640,
23641, 23642, 23643, 23644, 23645,
23646, 23647, 23648, 23649, 23650,
23651, 23682, 23683, 23684, 23685,
23686, 23687, 23688, 23689, 23783,
23784, 23785, 23786, 23787, 23915,
23934, 23935, 23933, 23932, 23931,
23930, 23929, 23928, 23927, 23926,
23925, 23924, 23923, 23922, 23921,
23920, 23919, 23918, 23917, 23916,
24144, 24145, 24146, 24426, 24427,
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W.P.No.6233 of 2020 etc., batch
24428, 24429, 24511, 24646, 25273,
25274, 25275, 25276, 25277, 25278,
25279, 25280, 25409, 25410, 25766,
25767, 25768, 25769, 25770, 25771, Dr.B.Ramasamy, Senior Central
25772, 25773, 25774, 25775, 25776, Government Standing Counsel - for R1
25777, 25781, 25778, 25779, 25782,
25783, 25784, 25785, 25786, 25787, Mr.P.Gurunathan
25788, 25789, 25924, 25925, 25926, Additional Government Pleader - for R2
25927, 25928, 25929, 25930, 25931,
25932, 26518, 26519, 26520, 26521,
26522, 26523, 26641, 26642, 26643,
26644, 26645, 26646, 27120, 27121,
27122, 27123, 27124, 27125, 27126,
27127, 27128, 27129, 27130, 27131,
27283, 27346 of 2022
COMMON ORDER
Since the issue raised in these writ petitions is one and the same, with the
consent of learned counsel for both sides, these writ petitions are disposed of by
this common order.
2. The petitioners herein are Primary Agricultural Cooperative Credit
Societies. They deal with lending loans to the members of the concerned
Society for agriculture and allied activities.
3. Sometimes, when the State Government comes forward to give
financial benefit or to undertake some welfare measures to larger public, that
kind of Schemes are being implemented through these Cooperative Societies.
One such welfare scheme that was proposed and implemented by the State
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W.P.No.6233 of 2020 etc., batch
Government is giving some freebies during the Pongal festival in the State of
Tamil Nadu. When such kind of Pongal benefits by way of cash which was
sought to be issued to the beneficiaries who are in lakhs and lakhs throughout
the State of Tamil Nadu, such a massive welfare measures naturally have to be
undertaken by the State Government through an organized system, which must
have the capacity to act throughout the State.
4. That is the reason why the Government, when wanted to implement
the Pongal welfare scheme, decided to implement the Scheme through these
Primary Agricultural Cooperative Credit Societies spread across the State.
According to the Scheme, the bulk allotment for the district concerned, would be
made to the District Central Cooperative Bank concerned and from the Central
Cooperative Bank concerned, the Primary Agricultural Cooperative Credit Society
(In short 'the Primary Society') would draw the money in bulk and would
distribute the money to the beneficiaries. For the purpose of distributing the
money when the Primary Societies withdraw money from the Central Cooperative
Bank of the district concerned, that was considered to be the income of the
Society, where the Central Cooperative Bank was liable to deduct tax at source
as per Section 194N of the Income Tax Act, 1961.
5. The said provision was brought to the Statute Book by virtue of the
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W.P.No.6233 of 2020 etc., batch
amendment made through Finance Act No.2 of 2019 with effect from
01.09.2019.
6. As per Section 194N, a banking company or a post office responsible for
paying any sum, aggregate of sums, as the case may be, in cash, in excess of
one crore rupees during the previous year, to any person (herein referred to as
the recipient) from one or more accounts maintained by the recipient with it,
shall, at the time of payment of such sum, deduct an amount equal to two
percent of sum exceeding one crore rupees, as income-tax. Therefore, it became
obligatory on the part of those banking companies to make a deduction of tax at
source at 2% of any payment in cash exceeding Rupees One Crore during the
previous year to any person, from one or more accounts maintained by the
recipient and that should be paid to the credit of the bank concerned as an
assessee.
7. In fact, this ceiling of Rupees One Crore had been amended to Rupees
Three Crores, in case of Cooperative Banks with effect from 01.04.2023.
8. Be that as it may. During the relevant point of time when these writ
petitions were filed, pursuant to Section 194N of the Act, the respective Central
Cooperative Banks had issued a circular to the Primary Societies coming under
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W.P.No.6233 of 2020 etc., batch
the purview of such District Central Cooperative Banks to strictly adhere to the
provisions of Section 194N. Felt aggrieved over the said circular, as these
Primary Societies were only acting as Facilitators to pass on the welfare scheme
being implemented by the State Government, they have chosen to challenge the
circulars issued by the respective District Central Cooperative Banks. That is how
a batch of writ petitions both at the Principal Seat as well as the Madurai Bench
of this Court came to be filed between 2020 and 2023.
9. When the first set of writ petitions came up for consideration before a
learned Single Judge, who, having considered the import of Section 194N, was
of the view that, since Section 194N is in the Statute Book as per which since the
Central Cooperative Banks have to act upon the circular issued by them, cannot
be found fault with, therefore, the prayer sought for in that batch of cases
cannot be granted, hence, the learned Judge by an order dated 04.11.2022 in
the matter of Molasi Primary Agricultural Cooperative Credit Society
Ltd., -vs- Income Tax Officer has held as follows,
"23. For the above reasons, the challenge to the impugned Circulars
cannot be entertained as the District Central Cooperative Banks have,
therein, merely sought to bring to the notice of the petitioner societies the
statutory provisions in regard to deduction of tax, enjoining that they
adhere to, and comply with the same, scrupulously. There could be no
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W.P.No.6233 of 2020 etc., batch
fault attributed to R2 Banks in this regard.
24. In light of the discussion as above, the challenge to the
Circulars fail and these Writ Petitions are dismissed both on the ground
of maintainability as well as merits. No costs. Connected Miscellaneous
Petitions are also dismissed."
10. Subsequently, another batch of cases, which were filed before the
Madurai Bench of this Court, came to be disposed of by another learned Judge
vide common order dated 24.02.2023 in W.P.(MD) Nos.27584 of 2022 etc., batch
in the matter of "DD388 Kuppammalpatti Primary Agricultural
Cooperative Credit Society -Vs- The Assistant Commissioner of Income
Tax and another"
11. In the said judgment, the learned Judge also was of the similar view
that, since Section 194N of the Act has come into effect from September 2019
and the provisions of Section 194N so long as is made available, if at all the
Societies want to get any relief, they must seek for exemption from the said
provision and in this regard, a request has already been sent by the Hon'ble
Chief Minister of Tamil Nadu dated 24.03.2020 to the Hon'ble Finance Minister,
Government of India and the Chief Secretary, Government of Tamil Nadu, who
has sent a similar request in D.O.Lr.No.15350/CC1/2022 dated 27.09.2022 to the
Chair Person, Central Board of Direct Taxes (CBDT) making a request for
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W.P.No.6233 of 2020 etc., batch
exemption of Cooperative Credit Societies and other Societies from the purview
of the provisions of Section 194N of the Income Tax Act for the cash withdrawal
exceeding Rupees One Crore from their accounts from the District Central
Cooperative Banks and therefore, in view of the said action taken on behalf of
the State Government, let the Primary Cooperative Societies who are the writ
petitioners can await for a decision to be taken in this regard by the Ministry of
Finance, Government of India and by recording the same, the writ petitions were
dismissed as withdrawn by order dated 24.02.2023.
12. Subsequently, another batch of cases came to be disposed of by the
very same learned Judge at the Madurai Bench of the Madras High Court on
03.03.2023 in W.P.(MD) Nos.4499, 4536 and 4592 of 2023 in the matter of
A.2979 Thirumohur Primary Agricultural Cooperative Credit Society
Ltd., -Vs- The Income Tax Officer and Others, where the learned Judge has
taken note of the letter dated 27.09.2022 of the Chief Secretary, Government of
Tamil Nadu writing to the Secretary to the Government, Government of India,
Finance Department, New Delhi and Chair Person of CBDT and those requests
made on behalf of the State Government since has been pending consideration
before the Finance Ministry, Government of India a well as CBDT, the learned
Judge has given a set of directions, which read thus:
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W.P.No.6233 of 2020 etc., batch
" 5.Having regard to the aforesaid submissions made, this Court
without expressing any view on the merits of the controversy involved,
passes the following order:
(i) it shall be incumbent upon the Ministry of Finance,
Government of India and the Central Board of Direct Taxes, New Delhi
to immediately examine the representation in D.O. Lr No.
15350/CC1/2022 dated 27.09.2022 sent by the Chief Secretary,
Government of Tamil Nadu;
(ii) if it is found that any other details or supporting
documents are necessary for granting the relief claimed had not been
produced, the deficiencies in that regard shall be informed in writing to
the concerned persons requiring the same to be furnished within a time
frame of not less
than 15 clear working days for the same;
(iii) in the event of not being satisfied with the said
requirements even
thereafter, an enquiry shall be conducted affording full opportunity of
hearing to the Government of Tamil Nadu and to all stakeholders through
public notice to explain their views in that regard;
(iv) a reasoned order shall be passed dealing with each of the
contentions raised on merits and in accordance with law and the decision
taken communicated to the Government of Tamil Nadu in writing under
acknowledgment; and
(v) the authorities under the Act shall be restrained from
taking any coercive action for recovery of tax deduction at source under
Section 194~N of the Act from the Primary Agricultural Co~operative
Credit Societies in the State of Tamil Nadu till the aforesaid exercise is
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W.P.No.6233 of 2020 etc., batch
completed."
13. Subsequently, another batch of cases of similar nature had come up
before the learned Judge who disposed of a similar batch of cases on
04.11.2022. Those batch of cases also were disposed of by the same learned
Judge at the Principal Seat of this Court on 26.06.2023 in W.P.Nos.14536 of 2022
etc., batch of cases, in the matter of S.161 Podaturpet Venkateswara
Primary Agricultural Cooperative Credit Society Ltd., Vs. Income Tax
Officer and Others, where the learned Judge having extracted the earlier
order passed by the learned Judge dated 04.11.2022, had ultimately passed the
following order.
" 7. In fact in my order dated 04.11.2022, I have recorded the
rival submissions in the context of the appropriate authority to consider
request for exemption and stated thus:~
?18. To a query from the Court, as to who would
constitute the specific authority before whom such
prayer was to be made, the respondents have reported
written instructions from the Commissioner of Income
Tax (TDS), Coimbatore stating thus: ?As per business
allocation rule, Central Government for tax purposes is
Finance Minister of India. Hence, any request may be in
the name of the Finance Minister with copy to CIT ITA
CBDT North Block who would process such requests.?
The petitioners may thus approach the competent
authority in the Government seeking relief from the
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W.P.No.6233 of 2020 etc., batch
application of Section 194N of the Act.?
8. In light of the aforesaid, let notice be issued by the
appropriate authority in the CBDT to the petitioner, if at all
representation dated 27.09.2022 had been received by CBDT, and
request for exemption on behalf of the petitioner societies be considered.
If the CBDT is of the view that the representation would have to be
made before any other appropriate authority, the petitioners may be
duly informed in order that they can take necessary steps in this regard.
9. Learned counsel for the petitioner relies on a judgment of the
Hon-ble Supreme Court in the case of The Principal Commissioner of
Income Tax 17, Mumbai v M/s Annasaheb Patil Mathadi Kamgar
Sahakari Pathpedi Limited [C.A.No.8719 of 2022 dated 20.04.2023]
deciding the question of whether that petitioner was a cooperative
society and not a bank for the purpose of Section 80 P(4) of the Act, in
favour of the society and adverse to the Department. The petitioner is at
liberty to cite this judgment and any other decisions that it places
reliance upon, before the authority hearing the request for exemption.
10. In light of order dated 04.11.2022, these writ petitions are
dismissed both on the ground of maintainability as merits with the
directions as above. No costs. Connected miscellaneous petitions are
closed."
14. Therefore, at least four set of writ petitions have already been
disposed of by four separate orders as cited supra.
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15. Insofar as the order dated 03.03.2023 is concerned, the learned Judge
has issued a Mandamus by way of directions in Para 5 of the order directing the
Ministry of Finance, Government of India and the CBDT, New Delhi to
immediately examine the representation given by the State Government written
by the Chief Secretary, Government of Tamil Nadu dated 27.09.2022 and after
affording an opportunity of hearing to the Government of Tamil Nadu and all
stakeholders through public notice, a decision shall be taken with regard to the
plea raised by them that whether these Cooperative Societies can be given
exemption from the purview of Section 194N of the Income Tax Act.
16. Though such a direction was given by this Court on 03.03.2023, even
till date no such exercise seems to have been undertaken by the Ministry of
Finance, Government of India or the CBDT. In this context, Dr.B.Ramasamy,
learned Senior Central Government Standing Counsel appearing for the Income
Tax Department submitted that within a reasonable period, the request made by
the Government of Tamil Nadu through the letter dated 27.09.2022 by the Chief
Secretary to Government, Government of Tamil Nadu would be considered and a
decision would be taken.
17. In view of the said stand taken by the learned Senior Counsel
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W.P.No.6233 of 2020 etc., batch
appearing for the Income Tax Department, Government of India and by taking
note of the earlier directions given by this Court as stated supra by the order
dated 03.03.2023 to the said authorities to consider and pass orders on the
request made by the Government of Tamil Nadu through their letter dated
27.09.2022 of the Chief Secretary to Government, this Court is inclined to dispose
of all these writ petitions with the following orders.
"That already a direction has been given by the order dated
03.03.2023 to decide on merits, the request made by the
Government of Tamil Nadu through the Chief Secretary to the
Government dated 27.09.2022 and since the learned Standing
Counsel requested further time to decide the same on merits, I
feel that further time of six weeks can be granted, within which
the Ministry of Finance, Government of India and the CBDT, New
Delhi would decide the request made by the Government of Tamil
Nadu through the letter of the Chief Secretary to Government of
Tamil Nadu dated 27.09.2022, seeking exemption for all those
Primary Cooperative Credit Societies functioning in the State of
Tamil Nadu from the purview of Section 194N of the Income Tax
Act and accordingly pass orders thereon and communicate the
same to the State of Tamil Nadu."
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W.P.No.6233 of 2020 etc., batch
18. With the above direction, all these writ petitions are disposed of. No
costs. Consequently, connected miscellaneous petitions are closed.
17.07.2023
Index : Yes
Neutral Citation : Yes
Speaking Order
KST
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W.P.No.6233 of 2020 etc., batch
To
1.The Managing Director / Additional Registrar
Erode District Central Cooperative Bank
No.1, Bhavani Main Road, Erode.
2.The Assistant Commissioner of Income Tax
TDS Circle, Coimbatore, Coimbatore District.
3.The Assistant Commissioner of Income Tax
TDS Ward, Tiruppur, Tiruppur District.
4.The Secretary to Government, Finance Department.
5.The Secretary to Government, Co-operation, Secretariat,
Chennai.
6.The Registrar of Cooperative Societies
No.170, Periyar EVR High Road, Poonamallee
High Road, Kilpauk, Chennai 600 010.
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W.P.No.6233 of 2020 etc., batch
R. SURESH KUMAR, J.
KST
W.P.No. 6233 of 2020 etc
batch of Writ Petitions
17.07.2023
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