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TMI Blog2023 (3) TMI 1387X X X X Extracts X X X X X X X X Extracts X X X X ..... 1387 - MADRAS HIGH COURT - [2024] 461 ITR 69 (Mad) - MADRAS HIGH COURT - HC - Dated:- 3-3-2023 - W.P. (MD) Nos. 4499, 4536 and 4592 of 2023 And W.M.P.(MD)Nos. 4224, 4225, 4251, 4252, 4299, 4300 of 2023 - - - Income Tax - TDS u/s 194N - cash withdrawals exceeding Rs.1 and from their accounts from District Cooperative Banks - WP been filed seeking direction to the Central Government to consider the representation sent by the Chief Secretary, Government of Tamil Nadu to the Chairperson, Central Board of Direct Taxes and the Ministry of Finance, Government of India to accord exemption to the Primary Agricultural Cooperative Credit Societies in the State of Tamil Nadu from the provisions of Section 194-N and to consequently restrain the con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e restrained from taking any coercive action for recovery of tax deduction at source u/s 194-N of the Act from the Primary Agricultural Co-operative Credit Societies in the State of Tamil Nadu till the aforesaid exercise is completed. - Honourable Mr. Justice P.D. Audikesavalu For the Petitioners : Mr. V.O.S. Kalaiselvam For the Respondents : Mr. N. Dilipkumar (for R1), Mr. D. Shanmugaraja Sethupathy (for R2). Mr. R.Baskaran ( for R3 R4), Additional Advocate General assisted by Mr. A. Baskaran, Additional Government Pleader in W.P. (MD) Nos. 4499 and 4536 of 2023. For the Petitioners : Mr. S. Balamurugan For the Respondents : Mr. Alaguram Jothi (for R1 R2), Senior Panel Counsel, Mr. R.Baskaran (for R3 R4), Add ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r Finance, Government of India has stated as follows:- I would like to inform that the Government of India in its Finance Bill 2019 has introduced a new section, Section 194-N, in the Income Tax Act, 1961, under which 2% has to be deducted by the payer as Tax Deduction at Source (TDS) when the aggregate amount of cash withdrawal by an account holder from one or more of his bank accounts exceed rupees one crore. The 2% TDS will be deducted on the amount of cash withdrawal exceeding one crore. In Tamil Nadu, Cooperative Societies are functioning under a three tie structure at Village, Taluk and District level, with State Apex Cooperative Bank at its top. Primary Agricultural Cooperative Credit Society (PACCS) at the Village level w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee of the State with effect from 01.09.2019 from the provisions of Section 194-N of the Income Tax Act. If similar exemption to Section 194-N of Income Tax Act is not provided to PACCS and other Primary Cooperative Societies for their cash withdrawal exceeding rupees one crore from their accounts in the District Central Cooperative Bank, credit delivery to farmers through PACCS will be crippled and their activities will come to a halt because of the negative margin in their lending operations to farmers. In view of the position stated above, I request you to kindly consider granting exemption to the PACCS and other Primary Cooperative Societies from the provisions of Section 194-N of the Income Tax Act, 1961, as it is detrimenta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cord exemption to the Primary Agricultural Cooperative Credit Societies in the State of Tamil Nadu from the provisions of Section 194-N of the Act and to consequently restrain the concerned authorities from taking any coercive steps for recovery of tax deduction at source of payments made by the District Central Co-operative Banks to the Primary Agricultural Co-operative Cr edit Societies in that regard. 5. Having regard to the aforesaid submissions made, this Court without expressing any view on the merits of the controversy involved, passes the following order:- (i) it shall be incumbent upon the Ministry of Finance, Government of India and the Central Board of Direct Taxes, New Delhi to immediately examine the representation in D.O ..... X X X X Extracts X X X X X X X X Extracts X X X X
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