2014 (9) TMI 86

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....Standing Counsel ORDER Petitioners who are co-operative societies in banking business are in joint writ action seeking writ in the nature of direction/stay of recovery of tax liability and interest in terms of the demand notices issued separately by the assessing officer under Section 156 of the Income Tax Act, 1961, (hereinafter referred to as the Act, for brevity) on the file of the 3rd re....

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....ken their consent for final disposal. 4. The contextual facts needing reference would show, petitioners 1 to 4 which are branches of Janatha Cooperative Bank Limited registered under the Co-operative Societies Act were established in the year 1964 and hold certificates of registration to carry on banking business. They are licensed by the Reserve Bank of India under Section 22(1) read with Sect....

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....to initiate proceedings as aforesaid on the ground that it does come within the mischief of Section 194A as banking institution run by a society is exempt from deducting tax at source on payment of interest by the petitioners to their members. This is the issue in limine raised by the petitioners. 6. Mr. Shankar for the petitioners would submit, petitioners have filed objections which has not b....

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.... than approaching this court. However, Mr.Shankar would submit, petitioners have approached this court firstly questioning the jurisdiction of the 3rd respondent to initiate such action and secondly, on the ground that the statutory period of 30 days is available which unjustifiably has been curtailed to 7 days. 9. In the circumstances, to balance the equation and safeguard the interest of the ....