The Kerala High Court suspended the Recovery proceedings against Poothrikka Service Co-Operative Bank until the Income Tax Commissioner disposes of the pending appeal.
The petitioner, Poothrikka Service Co-Operative Bank submitted that the assessment order denying the benefit of Section 80(P)of the Income Tax Act has been challenged by the petitioners by filing statutory appeals before the Commissioner of Income Tax (Appeals).
However, during pendency of those appeals, the Assessing Officer has communicated to the petitioners that the petitioners should pay 20% of the demand and then apply for stay of demand.
The learned Standing Counsel takes notice for respondents and argues that the petitioners can at the most prefer stay petitions and can seek stay in the impugned orders.
The question which is pending adjudication before the appellate authority is whether the petitioners who are cooperative Societies are entitled to deduction under Section 80 (P) of the Income Tax Act.
The Assessing Officer has denied the benefit of Section 80 (P) of the Income Tax Act to the petitioner societies.
The single-judge bench of Justice A.M.Badar directed the respondent to decide the pending appeals expeditiously and till then the respondents are directed to keep the recovery proceedings pursuant to the assessment order in abeyance.