THE VAYALA SERVICE CO-OPERATIVE BANK LTD. NO. 2175 vs. THE CENTRAL BOARD OF DIRECT TAXES

JUDGMENT The Petitioner, a Co-operative Bank Ltd., has approached this Court for appropriate direction or order directing the respondent Nos.2 and 3 not to insist the petitioner to remit 20% of the tax amount assessed as per Ext.P2 assessment order while considering Ext.P3 statutory appeal and Ext.P4 stay application. Learned counsel appearing on behalf of the petitioner submits that the assessment Authority erroneously passed the assessment order as the petitioner is entitled to deduction as per Section 80P (2)(a)(i) of the Income Tax Act. Be that as it may, the remedy to challenge the order of such nature is to file an appeal before the appellate authority i.e., the Commissioner of Income Tax . The requirement of 20% of the demanded amount is liable to be WP(C).No.3346 OF 2020 -3- dispensed with as the petitioner is an Agriculture Co- operative Bank. In support of the aforementioned contention, relied upon the Division Bench judgment of this Court dated 01.07.2019 in Writ Appeal No.1529 of 2019 (Ext.P6). Having heard the learned counsel for the petitioner and the learned standing counsel for respondents, I am of the view that this writ petition can be disposed of directing the Appellate Authority to consider and pass orders on Ext.P3 appeal and Ext.P4 stay petition as expeditiously as possible, without insisting on payment of 20% of tax liability. Till such time the interim application is disposed of, the demand notice for recovery shall be kept in abeyance. AMIT RAWAL VV JUDGE

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