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TMI Blog2023 (3) TMI 368X X X X Extracts X X X X X X X X Extracts X X X X ..... he claim of the petitioner that the Virudhunagar District Central Cooperative Bank is a cooperative society and not a scheduled bank are all factual disputes that will have to be raised before the appellate authority. The respondents herein have given a specific finding that the said Virudhunagar District Central Cooperative Bank is not a Co-operative society. Petitioner that Section 142B of the Act does not provide the petitioner with an opportunity of hearing cannot be made by the petitioner, as it had not challenged the statutory provisions of Section 142B of the Act, which provides for a faceless interface. The petitioner in this case pursuant to the notice issued under Section 142 of the Act invoking the scheme u/s 142B of the Act and having replied with necessary documents has participated in the enquiry under the faceless interface and hence, it cannot now turn back and say that it is prejudiced by such a procedure. The term technically not feasible in Section 142B(1)(a) of the Act would only mean that when it is not technologically feasible to invoke such provisions between the Department and the assessee. The technical advancement had reached new heights. Hence, the con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. 3.Mr.D.Shanmugaraja Sethupathi, learned counsel for the petitioner would submit that the petitioner is a Primary Agricultural Cooperative Credit Society with a primary object to provide assistance to the members/farmers for development of agricultural activities and all other incidental and ancillary activities. In the course of its business, the petitioner has also engaged itself in banking business, besides cooperative activities. The members of the society are also maintaining savings bank account in the petitioner society and they are entitled for interest at the rate of 3.5% per annum. The society is also running a fair price shop to implement the public distribution system of the State of Tamil Nadu. The deposits made by its members into various accounts have been invested and deposited in the Virudhunagar District Central Cooperative Bank as contemplated under the provisions of the Tamil Nadu Cooperative Societies Act and the Rules made thereunder. 4.He would claim that under Section 80P of the Income Tax Act (herein after referred to as Act) , the profit earned out of the credit facilities provided to the members and the profit in pursuance of the banking activiti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etitioner in the aforesaid bank was in furtherance of carrying on its business of banking and hence, any interest earned from and out of such investments will have to be exempted. He would also submit that even though an appeal is provided under the provisions of the Act against the impugned order, the petitioner had approached this Court, as the order impugned has been passed in violation of principles of natural justice. 8.He would rely upon the judgment of this Court in a batch of writ petitions in W.P.Nos.17 of 2020 and batch dated 31.01.2020, wherein in a similar situation, the learned single Judge of this Court had directed the petitioners therein to appear before their respective Assessing Officers on a fixed date and till such time, an interim stay of the recovery of demand relating to the issue was made. He would further submit that the deposits made by the petitioner in the aforesaid Bank are all statutory, which has to be complied with by the petitioner and hence, the interest on such statutory reserve deposits will have to be exempted. He would further submit that the reliance placed upon by the Assigning Officer in the case of Totgars, Co-operative Sale Society Li ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... celess interface provided by Section 142B of the Act. 12.He would further submit that Section 80P of the Act provides for various exemptions. The petitioner had made a claim for exemption of interest that has been received from the Virudhunagar District Central Cooperative Bank, which falls under Section 80P(2)(d) of the Act. He would further submit that the petitioner had been granted exemption under Section 80P(2)(a)(i) of the Act, which is the income that it had derived from the business of banking or providing credit facilities to its members. But however, the income that it had claimed by way of interest with the Virudhunagar District Central Cooperative Bank had been denied for the reason that the said Bank is not a Co-operative society and it is exclusively carrying on the banking activities. That apart, he would submit that the investments made by the petitioner in the Virudhunagar District Central Cooperative Bank are surplus funds in the hands of the petitioner, which are not required for its day-to-day activities. He would further submit that the impugned order does not suffer from any infirmity much less. He would submit that the writ petition itself is not maintaina ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... technologically feasible to invoke such provisions between the Department and the assessee. The technical advancement had reached new heights. Hence, the contentions of the learned counsel for the petitioner that it is not having the technological feasibility, in my view, deserves no consideration. 17.The reliance placed by the learned counsel for the petitioner upon the judgment of this Court in W.P.(MD) No.15046 of 2022 (Muhavoor Primary Agricultural Cooperative Society Limited, Virudhunagar District Vs. The Additional/Joint/Deputy Assistant Commissioner of Income Tax, Delhi and other) dated 18.07.2022 , in my view, would not be of any assistance to the petitioner. In that case, the Court had held that the order of final assessment had been passed within three days of the draft assessment and that the petitioner had been given little or no time. 18.In this case, the learned Standing Counsel for the respondents had invited my attention to the order of assessment, wherein in paragraph No.2, the details of opportunities given have been tabulated. From it, it could be seen that the petitioner had been given sufficient opportunity to explain its case. Further reliance placed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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