THE KAVIYOOR SERVICE CO-OPERATIVE BANK LTD vs. THE COMMISSIONER OF INCOME TAX (APPEALS)

J U D G M E N T The case projected in this Writ Petition (Civil) are as follows: The petitioner is a primary agricultural credit society registered under the provisions of the Co-operative Societies Act and Rules framed thereunder. The petitioner is an assessee on the file of the 2nd respondent. The assessing officer assessed a total income of Rs.89,09,079/- and arrived at a finding of aggregate income tax liability of Rs.35,50,244/- under various heads and issued a demand notice under Sec.156 of the Income Tax Act, demanding an amount of Rs.35,50,244/-. Aggrieved by the assessment made, an appeal was preferred before the 1st respondent Commissioner of Income Tax Appeals. The petitioner also moved a petition before the recovery officer to stay the recovery proceedings since the appeal is pending before him. Now the Income Tax Officer issued an order to remit 20% of the total demand raised and states that the stay of demand will be considered only on payment of 20% of the total demand amount. Since the stay granted is only a conditional stay, ..3.. the petitioner preferred a petition for complete stay of the recovery proceedings. No orders were passed on the stay petition. The appeal and stay against the assessment and demand notice are pending and if the amount is recovered serious prejudice will be caused to the petitioner Bank. It is in the light of these averments and contentions that the petitioner has filed the instant Writ Petition (Civil) with the following prayers: “ i. To issue a writ of certiorari quashing Exhibits P2, P3 and P7; ii. To issue a writ of mandamus or other appropriate writ, order ` or direction commanding and compelling the respondents to consider the Ext.P5 appeal and Exts.P6 and P8 stay petitions preferred by the petitioner within a time frame stipulated by this Hon'ble Court. iii. Issue a writ of mandamus or other appropriate writ order or direction commanding and compelling the respondents not to proceed with any recovery proceedings till the stay petitions are considered and appropriate orders passed therein. iv. To issue such other writ, order or direction as this Honourable Court may deem fit and proper in the case.”