TMI Blog2023 (8) TMI 42X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. - 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, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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, 145 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , 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, 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, 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 21273, 21276, 21279, 21292, 21293, 21282, 21283, 21286, 21288, 21277, 21280, 21284, 21285, 21289, 21291, 21287, 21290, 21405, 21406, 21451 21452 of 2022, and W.M.P.No. 1926 of 2023 Honourable Mr.Justice R.Suresh Kumar For the Petitioners In W.P.Nos.6233, 7199, 7588, 7734, 9002, 11786, 14531 and 16638 of 2022 : Mr.C.Prakasam For the Petitioners In 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, 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, 372 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 16, 24426, 24427, 24428, 24429, 27121, 27122, 27123, 27124, 27125, 27126, 27127, 27128, 27129, 27130, 27131, 27283, and 27346 of 2022 : No appearance For the R1 in W.P.Nos.6233 and 11786 of 2020, For R2 in W.P.Nos. 7199, 7588 and 7734 of 2020 : Mr.L.P.Shanmugasundaram For the For R4 to 6 in W.P.Nos.6233, 7588, and 7734 of 2020, For R3 to R5 in W.P.Nos. 9002 and 11786 of 2022 : Mr.P.Gurunathan Additional Government Pleader For the For R1 in W.P.No.7199 and 9002 of 2020, R2 in W.P.No.6233 and 11786 of 2022 and For R3 in W.P.Nos. 7588 and 7734 of 2020 In W.P.Nos. 14531 and 16638 of 2022 : Dr.B.Ramaswamy Senior Central Government Standing Counsel, Dr.B.Ramasamy, Senior Central Government Standing Counsel - for R1 No appearance - for R2 For the Respondents In 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, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 25275, 25276, 25277, 25278, 25279, 25280, 25409, 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, 26646, 27120, 27121, 27122, 27123, 27124, 27125, 27126, 27127, 27128, 27129, 27130, 27131, 27283, 27346 of 2022 : Dr.B.Ramasamy, Senior Central Government Standing Counsel - for R1 Mr.P.Gurunathan Additional Government Pleader - for R2, Dr.B.Ramasamy, Senior Central Government Standing Counsel - for R1, Mr.P.Gurunathan Additional Government Pleader - for R2, Dr.B.Ramasamy, Senior Central Government Standing Counsel - for R1 Mr.P.Gurunathan Additional Government Pleader - for R2 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 ag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 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, hav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... heir 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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