IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 11TH DAY OF JULY, 2019 BEFORE:
THE HON’BLE MRS. JUSTICE S.SUJATHA WRIT PETITION No.23233/2019 (T – IT) BETWEEN:
GANAPATHI CO-OPERATIVE AGRICULTURAL SOCIETY LTD., SAHAKARI SADANA, MAIN ROAD, KEMMANNU, UDUPI-576115 REP BY ITS C.E.O. Mr. MAHESH SALIAN ... PETITIONER [BY SRI MAHESH R. UPPIN, ADV.] AND:
1. COMMISSIONER OF INCOME TAX (APPEALS) AAYAKAR BHAVAN, C.R. BUILDING, N.G.ROAD, ATTAVARA, MANGALURU-575001 2. INCOME TAX OFFICER WARD -2, AAYAKAR BHAVAN, ADI-UDUPI MALPE ROAD, UDUPI-576103 …RESPONDENTS [BY SRI E.I.SANMATHI, ADV.] THIS WRIT PETITION IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE NOTICE DATED 20.03.2019 AND 22.05.2019 BEARING NO.PAN:AACAG0236F ISSUED BY THE R-2 MARKED AS ANNEXURE-D AND ANNEXURE-J RESPECTIVELY.
THIS PETITION COMING ON FOR PRELIMINARY HEARING IN ‘B’ GROUP, THIS DAY, THE COURT MADE THE FOLLOWING:-
O R D E R The petitioner has challenged the notices dated 20.03.2019 and 22.05.2019 issued by respondent No.2 marked at Annexures – D and J respectively, inter alia, seeking a direction to the Income Tax Appellate Tribunal, Bengaluru, to refund the tax recovery made as per Annexure – E dated 22.03.2019, Annexure – K dated 28.05.2019 and Annexure – L dated 28.05.2019, totally amounting to Rs.21,73,219/- to the petitioner along with interest and further direction to respondent No.2 to dispose of the appeal filed by the petitioner in ITA No.765/Bang/2019 within a time frame.
2. The petitioner is a Primary Agricultural Credit Co-operative Society registered under the Karnataka Co-operative Societies Act, 1959. The petitioner has claimed deduction under Section 80P of the Income Tax Act, 1961 (‘Act’ for short) relating to the Assessment Year 2016-17. The Assessing Officer concluded the assessment disallowing the benefit of deduction under Section 80P of the Act against which petitioner had preferred an appeal before respondent No.1 under Section 246A of the Act along with an application seeking for stay of the demand. In the meantime, the recovery proceedings were initiated by the respondent – Authority. As such, the petitioner approached this Court in W.P.No.12222/2019, wherein an interim order was granted not to precipitate the matter and finally the said writ petition has been disposed of, with a direction to the authorities not to precipitate the recovery of tax during the pendency of the appeal before respondent No.1. The appeal filed before respondent No.1 came to be disposed of on 15.03.2019, against which the petitioner has filed second appeal before the Income Tax Appellate Tribunal, Bengaluru (ITAT), the same is pending consideration. During the pendency of the proceedings before the CIT(A), respondent No.2 has issued a letter of attachment to the petitioner’s bankers and the entire demand has been recovered through the bankers of the petitioner. Being aggrieved by the same, the petitioner is before this Court.
3. Having heard the learned counsel appearing for the parties and perusing the material on record, more particularly, in view of the tax demanded being recovered by the respondent – Authorities, this Court is of the considered opinion that interest of justice would be sub-served in directing ITAT to dispose of the appeal in accordance with law in an expedite manner.
4. Hence, the following ORDER The Income Tax Appellate Tribunal, Bengaluru shall dispose of ITA No.765/Bang/2019 filed by the petitioner after hearing the parties in accordance with law in an expedite manner, preferably within a period of eight weeks from the date of receipt of certified copy of the order.
With the aforesaid observations and directions, the writ petition stands disposed of.
Sd/- JUDGE PMR