In a recent case, the Kerala High Court directed the commissioner of Income Tax to decide the appeal within 2 months since the petitioner is facing the recovery proceeding under the Income Tax Act,1961.
Peroorkada Service Co-Operative Bank Ltd, the petitioner is a primary Credit Co-operative Society engaged in the business of providing banking services and agricultural credit to its members. The petitioner claimed that its income is exempted from the payment of income tax under the provisions of Section 80P of the Income Tax Act, 1961. The assessing authority has completed the assessment for the assessment year 2012-2013 and had computed the total income at Rs.71,98,44,040/- as against the declared income of ‘nil’.
A demand notice under Section 156 of the Income Tax Act, 1961 for an amount of Rs.54,49,31,750/- was issued in pursuance to Exhibit P1 assessment order dated 23.02.2023. The petitioner has filed an appeal along with an application to stay the recovery proceedings before the second respondent and the same was transferred to the third respondent.
“Since the petitioner is facing recovery proceedings pursuant to Exhibit P6 demand notice, it would be appropriate to direct the third respondent to decide the appeal expeditiously.”, the single bench Justice Dinesh Kumar Singh.
The Court finally disposed of the petition with a direction to the third respondent to consider Exhibit P4 appeal filed by the petitioner and pass an appropriate order within two months.
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