TMI Blog2002 (12) TMI 68X X X X Extracts X X X X X X X X Extracts X X X X ..... cieties or co-operative banks registered under the Kerala Co-operative Societies Act engaged in advancing loans to its members. Even though the societies are constituted to serve to various categories of people such as farmers, employees in companies, small traders, etc., their activities are essentially the same, i.e., advancing loans to its members and accepting deposits from members and public. These co-operative banks and societies are challenging the validity of notices issued to each of them under section 133(6) of the Income-tax Act by various authorities under the Act. A specimen of the notices issued to the petitioner in O.P. No. 35300 of 2002, is extracted hereunder: "In connection with the income-tax investigation in your case, you are requested to appear and furnish the following information in writing on November 22, 2002, at 11 a.m. 1. Whether you are assessed to income-tax? If assessed, your permanent account number and designation of the Assessing Officer, (please furnish a copy of acknowledgment for filing the return of income for the latest assessment year for which return has been filed). 2. Details of your income from different sources during the last four ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Income-tax Act does not authorise issuance of notice to the co-operative societies including co-operative banks. In short, the impugned notice is without jurisdiction, is their contention. Further, according to them, even if notices are technically permissible the same will go against the spirit of the Act which grants a special status to the co-operative societies and so much so, the notices are an exercise of arbitrary power by the authorities. On the other hand, learned standing counsel for the Department contended that section 133(6) applies to all persons and by virtue of the wide definition of "person" contained in section 2(31) of the Income-tax Act the co-operative societies including co-operative banks are liable to be proceeded against under section 133(6) of the Act. Therefore, according to him, the notices are within the powers of the authorities who issued the same. He contended that the co-operative societies do not enjoy any privilege under the Income-tax Act except the benefits specifically granted to them such as lower rate of tax, exemption from tax to the extent provided under section 80P, and immunity from deduction of tax at source on certain interest re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... every artificial juridical person, not falling within any of the preceding sub-clauses. Explanation.--For the purposes of this clause, an association of persons or a body of individuals or a local authority or an artificial juridical person shall be deemed to be a person, whether or not such person or body or authority or juridical person was formed or established or incorporated with the object of deriving income, profits or gains;" The definition clause is inclusive and not exhaustive. After arraying the categories of persons covered by the normal meaning of a term "person" the residuary clause covers every "artificial juridical person" not falling within any of the preceding sub-clauses. This clearly shows that the Act does not propose to exclude anyone or any institution from the scope of the definition of the term "person". A society constituted under the Co-operative Societies Act is an artificial juridical person and so much so it answers the definition of "person" under the definition above referred. Therefore, section 133(6) squarely applies to a co-operative society as well. Sri M.K. Damodaran, learned counsel appearing for one of the petitioners, has pointed out that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ties of the society, its income, expenditure, etc. The objection is only against calling for particulars of depositors by the Department. This is only as part of the survey conducted by the Department to ensure that moneys deposited in the co-operative societies and co-operative banks are accounted by such depositors. The society by itself cannot have any grievance against the notice because the notice does not contemplate any action against the society. Since it is a settled position that the authority empowered to do a thing will have auxiliary and necessary power to achieve the objective, none can have a doubt that the income-tax authorities whose duty it is to trace tax evaders and to bring them to book and compel them to pay tax can ask for details on deposits. Therefore, a survey or investigation conducted to trace black money is absolutely within the powers of the income-tax authorities and co-operative societies or banks cannot claim any immunity for hoarding black money. Even though not specifically conceded by the petitioners, their case is that unless societies enjoy immunity from section 133(6) proceedings and information on deposits and depositors is kept out of reach ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Supreme Court in the decision referred to above, I do not think the petitioners can challenge the notice issued calling for details of deposits. It is worthwhile to look into the other provisions of section 133 which provides for collection of information by the Income-tax Department from firms with regard to the names and addresses of the partners and their shares and from Hindu undivided families with regard to the names and addresses of the manager and the members of the family and requiring any assessee to furnish a statement of the names and addresses of all persons to whom he has paid in any previous year rent, interest, commission, royalty or brokerage or any annuity, not more than one thousand rupees, or such higher amount as may be prescribed, together with particulars of all such payments made and requiring any dealer, broker or agent or any person concerned in the management of a stock or commodity exchange to furnish a statement of the names and addresses of all persons to whom he or the exchange has paid any sum in connection with the transfer, whether by way of sale, exchange or otherwise, of assets, or on whose behalf or from whom he or the exchange has received a ..... 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