The Kerala High Court directed the Appellate Authority to decide matter within 3 months in the matter of demand of 20% of tax for the conditional stay on a Primary Agricultural Credit Society.
The petitioner, Sooranad Gramodharana Service Cooperative Bank Ltd, is a co-operative society classified as Primary Agricultural Credit Society. The counsel for the petitioner submitted that the petitioner society is entitled for a deduction of the income under Section 80(P) (2) (d) of the Income Tax Act, 1961. For the assessment year 2020-21, the petitioner had filed return after claiming deduction under Section 80P of the Income Tax Act.
The counsel further submitted that even the interest which has been earned by the petitioner is from the District Co-operative Bank, which is run by the Co-operative Society. Learned counsel for the petitioner submits that the demand of 20% assessed tax for conditional stay is highly prejudicial in the interest of justice. The counsel also contended that the petitioner’s case is covered by the judgment of the Supreme Court in Mavilayi Service Co-operative Bank.
The counsel for the respondents submitted that for staying the recovery, the petitioners have to deposit 20% of the assessed tax and without making payment of the 20% of the demand, the stay cannot be granted in appeal. It was further submitted that so far as legal contentions of the counsel for the petitioner is concerned, the High Court may not record any finding inasmuch as that would prejudice the case of the revenue before the appellate authority.
A Single Bench of Justice Dinesh Kumar Singh observed that “I find that this writ petition to be disposed of with a direction to the appellate authority to decide the appeal, within a period of three months without insisting upon pre-deposit of 20% of the assessed tax. The petitioner should co-operate in deciding the appeal expeditiously.”
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