THE RADDI SAHAKAR BANK NIYAMIT vs. ADDITIONAL/ASSISTNAT COMMISSIONER OFM INCOME TAX

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W.P. No.103096 of 2022

IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH

DATED THIS THE 2ND DAY OF SEPTEMBER, 2022

BEFORE

THE HON'BLE MR JUSTICE M.I.ARUN

WRIT PETITION NO. 103096 OF 2022 (T-IT)

BETWEEN:

THE RADDI SAHAKAR BANK NIYAMIT PAN: AAAAT3297K, REP. BY CHIEF EXECUTIVE OFFICER, SHRI VENKARADDI S/O.RUDRAPPA NAGAVI, AGE 57 YEARS, AKSHYYA ENCLAVE, STATION ROAD, DHARWAD-580001. TEL: 9448993504, EMAIL: raddibank@gmail.com … PETITIONER (BY SHRI MANOJ D.PUKALE & SHRI PRAKASH R.BADIGER, ADVOCATES)

AND:

VISHAL NINGAPPA PATTIHAL Digitally signed by VISHAL NINGAPPA PATTIHAL Date: 2022.09.05 09:45:43 +0530

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W.P. No.103096 of 2022

THIS WRIT PETITION IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA, PRAYING TO ISSUE WRIT/S OR ISSUE OF APPROPRIATE WRIT/S OR DIRECTION IN THE NATURE OF WRITS TO ENFORCE FUNDAMENTAL RIGHTS CONFERRED BY PART III OF THE CONSTITUTION OF INDIA, 1950 FOR THE ABOVE CAUSE THIS WRIT JURISDICTION IS MOVED PRAYING FOR ISSUE OF APPROPRIATE WRIT/S TO A) DIRECT RESPONDENT NOS.1 AND 4 (ASSESSING OFFICERS) AND RESPONDENT NO.5 (CIT (AU-1) TO DISPOSE THE PENDING STAY APPLICATION IN ANNEXURE-C AND ANNEXURE-D BOTH DATED 05/08/2017 PERTAINING TO ASSESSMENT YEAR-2014-15; B) DIRECT RESPONDENT NO.4 (ASSESSING OFFICER) TO REFUND RS.1,18,28,036/- WITH INTEREST UNDER SECTION 244 OF INCOME TAX ACT, 1961 BEING EXCESSIVELY RECOVERED AMOUNT AS PER FORM 26AS (ANNEXURE-F) WHICH IS ABOVE 20 PERCENT OF OUTSTANDING DEMAND OF RS.7,66,37,670/- I.E. RS.2,71,55,570/- MINUS RS.1,53,27,534/-); C) DIRECT RESPONDENT NOS.1 AND 4 (ASSESSING OFFICERS) TO CONSIDER ISSUES REMANDED VIDE ORDER DATED 31/07/20 IN ITA NO. 2527/BANG/2017 PASSED UNDER S.254 (1) OF INCOME TAX ACT, 1961 BY THE BENGALURU INCOME TAX APPELLATE TRIBUNAL FOR ASSESSMENT YEAR 2014-15 PRODUCED IN ANENXURE-J AND GIVE APPROPRIATE APPEAL EFFECT; & D) DIRECT RESPONDENT NO.5 (CIT(AU-1)) TO HEAR AND DISPOSE LONG PENDING APPEAL FILED VIDE ANNEXURE-H DATED 14/02/2018.

THIS WRIT PETITION COMING ON FOR FURTHER HEARING, THIS DAY, THE COURT MADE THE FOLLOWING.

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W.P. No.103096 of 2022

O R D E R 1. The Income Tax returns filed by the petitioner for the Assessment Year 2014-15 was scrutinized by the Revenue and the assessment order dated 27.12.2016 (Annexure-B to the writ petition) was passed by respondent No.4. Aggrieved by the same, the petitioner preferred an appeal before the Commissioner of Income Tax (Appeals), respondent No.5 herein. The petitioner further prayed for staying the operation of the demand made pursuant to the assessment order before both respondent Nos.4 and 5. However, the same has not been considered. Instead, the appeal challenging the assessment order has been disposed off by respondent No.5 (Annexure-E to the writ petition) dated 05.09.2017. In the said order, in respect of the question verifying whether the interest payment made by the petitioner is to the members or non members so as to decide the TDS liability has been remanded back to the fourth respondent – Assessing Officer. Regarding the grievance of the petitioner about disallowance of

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W.P. No.103096 of 2022

Rs.3,76,000/- being excess claim of deduction under Section 36(1)(viia) of the I.T. Act, the order of fourth respondent – Assessing Officer has been confirmed. Regarding addition of Rs.9,42,930/- made on account of the disallowance of excess claim of deduction under Section 36(1)(vii) of the I.T. Act also the order of Assessing Officer has been up held. Pursuant to the decision of respondent No.5 at Annexure-E to the writ petition, respondent No.4 has passed an order dated 12.01.2018 giving effect to the order of respondent No.5 in respect of disallowing the deductions as claimed by the petitioner, as stated above, vide Annexure-G to the writ petition. 2. Aggrieved by the order of the fifth respondent at Annexure-E to the writ petition, the petitioner preferred an appeal before the Tribunal and the order at Annexure-J, dated 31.07.2020 has been passed by the Tribunal, wherein for certain issues, the matter has been remanded back to the Assessing Officer, respondent No.1. Further, the petitioner aggrieved by the order at Annexure-G to the writ

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W.P. No.103096 of 2022

petition filed an appeal again to respondent No.5 by way of Annexure-H to the writ petition, which is also pending. Thus, presently the case of the petitioner is pending before the jurisdictional Assessing Officer (Faceless) regarding the issue pertaining to the interest payment done by the petitioner is to the members or non members and the impact of the same on the TDS to be deducted as per the remand made by respondent No.5 vide Annexure-E to the writ petition and the issue pertaining to the deduction of excess amount under Section 36(1)(viii) of the I.T. Act remanded by the Tribunal as per Annexure-J to the writ petition and the appeal filed by the petitioner before respondent No.5 vide Annexure-H to the writ petition. 3. Aggrieved by the non disposal of the aforementioned proceedings before the Assessing Officer and the Commissioner of Income Tax (Appeals) and also the authorities not passing any order on the application filed by the petitioner against the demand raised as per the

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W.P. No.103096 of 2022

assessment order dated 27.12.2016, passed by respondent No.4, the instant writ petition is filed. 4. The assessment order dated 27.12.2016 has been challenged by the petitioner and the same has been disposed off by respondent No.5 vide Annexure-E to the writ petition. The main appeal having been disposed off, consideration of the interim prayer, as prayed in the instant writ petition against the assessment order does not arise and accordingly the same is liable to be rejected. 5. In respect of the pending proceedings before the Assessing Officer and the Commissioner of Income Tax (Appeals), as it pertains to the assessment year 2014-15, it is desirable that respondent Nos.1 and 5 are directed to dispose off the matters as expeditiously as possible. Hence, the following: O R D E R

Respondent Nos.1 and 5 are directed to dispose off the matters pending before them in respect of the petitioner

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W.P. No.103096 of 2022

herein in respect of the assessment year 2014-15 as expeditiously as possible.

The writ petition is disposed off accordingly.

Sd/- JUDGE

Vnp* List No.: 1 Sl No.: 65