IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR.JUSTICE ANTONY DOMINIC MONDAY, THE 31ST DAY OF DECEMBER 2012 10TH POUSHA 193 WP(C)No.30034 of 2009 (Y) --------------------------- PETITIONER(S)/PETITIONER: ------------------------ KERALA STATE NIRMITI KENDRA, NIRMITI HOUSE, P.T.P NAGAR, THIRUVANANTHAPURAM REPRESENTED BY ITS ADMINISTRATION MANAGER/FINANCIAL ADVISOR. BY ADV. SRI.M.K.SHASHI KUMAR RESPONDENT(S): -------------- 1. THE COMMISSIONER OF INCOME TAX THIRUVANANTHAPURAM.
2. THE INCOME TAX OFFICER (TDS) AYAKAR BHAVAN, KOWDIAR, THIRUVANANTHAPURAM.
3. UNION BANK OF INCOME PERURKKADA BRANCH, T.C. 5/1089, MADOLIL R.J.TOWERS, OPP.THANKAMMA STADIUM, PEROORKADA PO THIRUVANANTHAPURAM. *ADDL.R4 STATE OF KERALA, REPRESENTED BY THE SECRETARY, TAXES DEPARTMENT, SECRETARIATE, THIRUVANANTHAPURAM. *ADDL.R5 UNION OF INDIA, REPRESENTED BY THE SECRETARY, TAXES DEPARTMENT, CENTRAL SECRETARIATE, NORTH BLOCK, NEW DELHI. (*IMPLEADED AS PER ORDER DATED 9 12.2009 IN I.A.No.15276/2009 R1 & R2 BY ADV.SRI.JOSE JOSEPH, SC, FOR INCOME TAX R3 BY ADV.SRI.A.S.P.KURUP, SC, UBI THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 31-12-2012, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: SS WP(C)No.30034 of 2009 (Y) --------------------------- APPENDIX PETITIONERS EXHIBITS EXT.P1 TRUE COPY OF THE REGISTRATION CERTIFICATE No.451/89 DATED 5 6.1989. EXT.P2 TRUE COPY OF THE RELEVANT PORTION OF THE NOTIFICATION ISSUED UNDER SECTION 19 A(iii)(f) OF THE INCOME TAX ACT REPORTED IN THE A.N.AIYAR'S INDIAN TAX LAWS 2002 EXT.P3 TRUE COPY OF THE LETTER DATED 23 5.2007 ISSUED BY THE PETITIONER TO THE 3RD RESPONDENT BANK. EXT.P4 TRUE COPY OF LETTER DATED 24 8.2009 DIRECTING THE PETITIONER TO REMIT THE TDS. ADDL.EXT.P5 TRUE COPY OF THE G.O.NO.(MS)25/89/Hsg. DATED 29 4.1989. ADDL.EXT.P6 TRUE COPY OF THE LETTER NO.PKDA/GEL/119/10-11 DATED 3 6.2010. RESPONDENTS EXHIBITS NIL // TRUE COPY \\ P.A. TO JUDGE SS ANTONY DOMINIC, J.
==================== W.P.C. No. 30034 OF 200.==================== Dated this the 31st day of December 2012 JUDGMENT The petitioner is a society registered under the provisions of the Travancore-Kochi Literary Scientific and Charitable Societies Registration Act, 1955. Ext.P1 is the certificate of registration. In this writ petition they seek a declaration that they fall within the purview of the notification issued by the Government of India under section 194 (A)(iii) (f) of the Income Tax Act and thus entitled to be exempted from deduction of tax and source on the interest income received by them.
2. Section 194 A (iii) (f) states that the provisions of sub Section 1 of Section 194 A shall not apply to such income credited or paid to such other association or body which the Central Government may for reasons to be recorded in writing, notified in this behalf in the Official Gazette. The extract of the notification relied on by the petitioner is Ext.P2 and the relevant provision of this notification reads thus: "Any Corporation established by a Central, State or Provincial Act; any company in which all the shares are hold (whether singly or taken together) by the Government or the Reserve Bank of India or a corporation W.P.C. No. 30034 OF 200.-2- owned by that Bank; any undertaking or body including a society registered under the Societies Registration Act, 1860 (XXI of 1860), financed wholly by the Government: SO 3489/22-10-70." 3. Reading of the above provision of the notification shows that in so far as Societies are concerned, only such of those Societies which are registered under the Societies Registration Act 1860 are exempted. In other words, the terms of the notification itself show that a society like the petitioner which is registered under the Travancore-Kochi Literary Scientific and Charitable Societies Registration Act 1955 are not exempted from the levy of TDS.
4. A provision for exemption has to be construed strictly and this court has to confine the scope of the notification to its words. Words of the notification are clear that the exemption is confined to Societies registered under the Societies Registration Act. If that be so, this court cannot include societies which are not included in the notification by way of a declaration. Therefore, the prayer sought in the writ petition has to be declined. W.P.C. No. 30034 OF 200.-3- 5. Be that as it may, Section 197 of the Income Tax Act authorises the assessing officer to grant certificate as contemplated therein if he is satisfied that the total income of the recipient justifies deduction of tax at a lower rate or without any deduction of income tax. Therefore, I dispose of this writ petition leaving it open to the petitioner to approach the assessing officer by making an application under Section 197 of the Income Tax Act. The writ petition is disposed of as above. ANTONY DOMINIC JUDGE kvr/