IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE K.M.JOSEPH THURSDAY, THE 8TH JANUARY 2009 / 18TH POUSHA 1930 WP(C).No. 37895 of 2008(J) ---------------------------------------------- PETITIONER(S): ---------------------- MARANGATTUPILLY SERVICE CO.OPERATIVE BANK LTD, NO.3556, MARANGATTUPILLY, KOTTAYAM DISTRICT, REPRESENTED BY ITS SECRETARY. BY ADV. SRI.SUNIL CYRIAC,SC,MARANGAT.S.COOP.BAN RESPONDENT(S): ------------------------- 1. THE SUB TREASURY OFFICER, MEENACHIL, PALA. 2. INCOME TAX OFFICER, WARD-4, KOTTAYAM. 3. THE ACCOUNTANT GENERAL, GOVERNMENT OF KERALA, THIRUVANANTHAPURAM-39. R1 & R2 BY GOVERNMENT PLEADER SHRI C.K. GOVINDAN R3 BY SHRI JOSE JOSEPH, SC. THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 08/01/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: APPENDIX IN W.P.(C). NO.37895 OF 2008 J PETITIONER'S EXHIBITS: EXT.P1TRUE COPY OF THE LETTER DATED 02.08.2008 ISSUED BY THE 1ST RESPONDENT TO THE PETITIONER BANK. EXT.P2TRUE COPY OF THE CERTIFICATE ISSUED BY THE 2ND RESPONDENT TO THE PETITIONER BEARING NO.14/ITO/W4/KTM/08-09 DATED 14.05.08. EXT.P3TRUE COPY OF THE ORDER DATED 04.11.2008 IN W.P.(C).NO.32179/08 OF THIS HONOURABLE COURT. RESPONDENTS' EXHIBITS: NIL. // TRUE COPY// PS TO JUDGE K. M. JOSEPH, J. -------------------------------------- W.P.C. NO. 37895 OF 2008 J -------------------------------------- Dated this the 8th January, 2009 JUDGMENT Complaint of the petitioner, which is a Co-operative Society, is that without authority of law, tax is being deducted from the interest payable on the deposits made by the petitioner in the Treasury. When the matter came up today, learned Government Pleader submits that objection has been dropped and there will be no deduction of the tax from the interest payable to the petitioner. I also take note of Ext.P2 Certificate issued by the Income Tax Officer which is valid till 31.3.2009. In the light of the above submission which I record, the Writ Petition is allowed. There will be a direction to the first respondent to disburse the term deposits together with interest thereon on their maturity without making any income tax deduction therefrom. In respect of the third prayer, if any amount has been deducted from the interest and not paid over to the Department, there will be a direction to the first respondent WPC.37895/08 J 2 to reimburse the amount collected from the petitioner. This will be done within one month from the date of receipt of a copy of this Judgment. In case the amount has been paid over to the Income Tax Department, it is for the petitioner to file Return before the Income Tax Authorities and claim refund. Sd/= K. M. JOSEPH, JUDGE kbk.