The petitioner is a Primary Agricultural Credit Society. They filed appeals against assessment order for the year 2008-2009, 2010-2011 and 2011-2012 before first respondent-Commissioner of Income Tax. The grievance of the petitioner is that while assessing, the second respondent disallowed the deduction claimed by the petitioner under Section 80P of the Income Tax Act, 1961. The petitioner highlights that the business of the petitioner's society in principal and primarily is to provide financial accommodation to its members for the purposes connected with agricultural activities and, therefore, denial for claim of deduction under 80P of the Income Tax Act is unsustainable.
2. Heard the learned counsel for the petitioner and the learned Standing Counsel.
3. The appeals filed by the petitioner are pending before the first respondent as Exts.P3, P6 and P9. The petitioner submits that they have remitted a sum of Rs.19 lakhs towards 50% of the demand raised for the assessment year 2010-11. Therefore, it is prayed that the appeals filed by W.P.(C).No.12293/2014 -:2:-
the petitioner for the assessment years 2008-2009, 2010-2011 and 2011-2012 may be directed to be disposed of expeditiously and without insisting for any condition for payment of tax in view of the 50% of the amount paid for the assessment year 2010-2011. The learned Standing Counsel opposed the said prayer. It is submitted by the learned Standing Counsel that without making 50% payment of the demand for the assessment years 2008-2009 and 2011-2012, the appeals cannot be taken up.
4. The petitioner is a Primary Agricultural Credit Society. The petitioner's submission that any insistance for payment of 50% of the demand for the assessment years 2008-2009 and 2011-2012 would result in stoppage of operation of their Society and it is beyond their capacity to make such payment.
5. Considering the short question that is involved which is common in all these appeals and that the total demand for all three assessment years would count to Rs.78,53,040/-, I am of the view, the petitioner should pay 30% of the total demand and taking note of the fact that the petitioner has already paid Rs.19 lakhs, they can be directed to pay Rs.7 lakhs which would make up 30% of the amount demanded for all the W.P.(C).No.12293/2014 -:3:-
three assessments. In the result, there shall be a direction to dispose Exts.P3, P6 and P9 appeals by the first respondent, within a period of three months from the date of production of a copy of this judgment before the first respondent, on condition that the petitioner remits Rs.7 lakhs altogether towards assessment years 2008-2009 and 2011-2012. It will be proper for the respondents to adjust the amounts paid and to be paid by the petitioner in an appropriate manner subject to the final decision in the matter. Till disposal of the appeals, all coercive steps pursuant to Ext.P2, P5 and P8 to recover the amount are stayed. It is made clear, on failure to make payment as above, it is open for the respondents to initiate recovery proceedings against the petitioner.
This writ petition is disposed of as above.
Sd/-
A.MUHAMED MUSTAQUE, JUDGE ms