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Issues Involved:
1. Applicability of the Interest-tax Act, 1974, to co-operative societies. 2. Jurisdiction and authority of the respondent. 3. Barred by limitation. Summary: Issue 1: Applicability of the Interest-tax Act, 1974, to Co-operative Societies The petitioner co-operative societies argued that they are not finance companies within the meaning of section 2(5B)(va) of the Interest-tax Act, 1974, and that section 2(5A)(i) of the Act is not applicable to them. The court examined the definition of "credit institution" u/s 2(5A) and concluded that a co-operative society engaged in the business of banking falls within this definition. The court emphasized that such societies, even if not banking companies, are credit institutions if they engage in banking activities like lending money to members or accepting deposits. Issue 2: Jurisdiction and Authority of the Respondent The petitioners contended that the actions of the Income-tax Officer were without jurisdiction and authority. The court held that the respondent had the authority to issue notices and call for particulars or returns. The court noted that the petitioners could raise objections before the respondent, who is competent to decide on these matters, and that statutory appeals are available under the Interest-tax Act. Issue 3: Barred by Limitation The petitioners argued that the respondent's actions were barred by limitation u/s 10 of the Interest-tax Act. The court found that the actions were not barred by limitation, as the notices were issued within the permissible time frame. The court stated that the petitioners could still raise this objection before the respondent during the proceedings. Conclusion: The court dismissed the writ petitions as premature, allowing the petitioners to raise their objections before the respondent within one month. The respondent is to conduct an enquiry and pass appropriate orders in accordance with the Interest-tax Act, 1974. The interim stay granted in these writ petitions was vacated.
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