In a recent case, the Kerala High Court stayed the recovery proceeding against the cooperative society which was initiated after rejecting the claim of exemption under section 80(P) of the Income Tax Act, 1961 as the assessee failed to prove as a cooperative society which follows the Kerala Co-operative Society Act Rules.
Chengaroor Service Co-Operative Bank Limited NO: A-149, the Petitioner is a primary Co-operative Society registered under the Kerala Co-operative Societies Act. The petitioner’s claim for an exemption to pay Income Tax under Section 80 (P) of the Income Tax Act has been rejected by the assessing authority on the ground that the petitioner society had failed to prove that it was worked as per the rules of the Kerala Co-operative Societies Act.
The petitioner submitted that in identical matters the Court has directed for hearing of the appeals and stayed the recovery of the assessed tax without making payment of 20%. Sri. Navaneeth. V. Nath, the Counsel for Revenue does not dispute the fact that a similar matter was disposed of and directed for an expeditious disposal of the appeal within two months and the steps to realization of the assessed tax have been stayed.
The single judge bench of Justice Dinesh Kumar Singh disposed of the writ petition with a direction to the 2nd and 4th respondents to take the hearing appeals and dispose of them expeditiously within two months. The disposal of the appeals is subject to the cooperation of the assessee or the petitioner. For two months, no coercive measures shall be taken against the petitioner for realization of the tax assessed in this Writ Petition.
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