Muhavoor Primary Agricultural Cooperative Socieity Ltd Vs Assessment Unit (Madras High Court)
Writ dismissed as status of co-op bank or society cannot be decided without impleading the entity
Madras High Court held that it cannot be decided that whether Virudhunagar District Central Cooperative Bank Limited is a Cooperative Bank or a Cooperative Society without the said institution is impleaded as party respondent. Hence, writ appeal dismissed.
Facts- The appellant is a Primary Agricultural Cooperative Society. The Assessment Unit of the Income Tax Department, National Faceless Assessment Centre, Delhi passed assessment order dated 20.12.2022 holding that there was under reporting of income. The appellant society had made investments in Virudhunagar District Central Cooperative Bank Limited and earned interest during the relevant assessment year (2021-22). The appellant claimed deduction u/s. 80P(2)(a)(i) of the Income Tax Act, 1961. This claim stood rejected in the impugned assessment order. Single Judge dismissed the writ petition on the ground of non-exhaustion of alternative remedy. Aggrieved by the same, this writ appeal has been filed.
Conclusion- Held that the primary issue that calls for consideration is whether Virudhunagar District Central Cooperative Bank Limited is a Cooperative Bank or a Cooperative Society. If it is treated as a Cooperative Society, the impugned assessment order has to be set aside. The stand of the Income Tax Department is that it is a Cooperative Bank. The stand of the appellant is that it is a Cooperative Society. We do feel tempted to go into this issue as it is more a question of law. But we wonder if a finding can be given without the said entity being before us. We cannot speculate on the stand that may be taken by them as to their identity or character. In any event, no pronouncement as to whether they are a cooperative society or a cooperative bank can be made behind their back. The appellant did not implead the said institution as a party respondent and hence, we decline to go into this issue. The learned Single Judge had granted liberty to the writ petitioner to file an appeal. The said remedy can as well be pursued. This writ appeal is dismissed with liberty to the appellant to file an appeal before the appellate authority.
