N.BHASKARAN NAIR Vs. STATE OF KERALA

JUDGEMENT

(1.) Petitioner, who is the Proprietor and Manager of a Chit Fund Company, seeks to issue a writ of Mandamus commanding the 2nd and 3rd respondents to implement the decision in Ext.P2 which was taken as per the direction of this Court in Ext.P1 judgment.

(2.) The petitioner states that as per Section 20(a)(i) of the Chit Funds Act, 1982, a Foreman applying for previous sanction to conduct chit shall deposit in the name of the Registrar, an amount equal to 50% of the chit amount in cash in an approved Bank. Such Foremen-depositors can withdraw the deposited amount after the chit. The Bank used to deduct a tax on the interest arising on such deposits. However, the petitioner and other Foremen who are depositing security amounts with the Bank, are unable to claim/get credit of the TDS amount while filing the income tax returns, for the reason that the amount is being deposited in the PAN account number of the Assistant Registrar of Chitties and not in the PAN number of the depositors.

(3.) Though representations were filed before the Registration Inspector General, the said grievance of the Foreman remained unredressed. The petitioner thereupon approached this Court filing W.P.(C) No.7277/2019 seeking to enable the Foremen to deposit security amount with the PAN number of the Foremen. This Court, as per Ext.P1 judgment dated 28.03.2019 in W.P.(C) No.7277/2019, directed the 2nd respondent to consider the issue.