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2014 (10) TMI 401 - HC - Income TaxStay application – Applicability of guidelines for staying demand - Held that:- Assessee rightly contended that in Commissioner of Income Tax Versus Jafari Momin Vikas Co-Op Credit Society Ltd. [2014 (2) TMI 28 - GUJARAT HIGH COURT] it has been rightly held that they are not doing banking activities and they do not fall within the definition of banking as defined under Section 5(b) of the Banking Regulation Act, nor do they possess license u/s 22 of the Act, which is the mandatory requirement - As per the clarification issued by the CBDT dated 01.12.2009, detailed instructions have been given as to how and under what circumstances, stay of demand could be granted - the guidelines are binding upon the Officer, while considering the application for grant of stay. The petitioner is the Co-operative Society registered under the provisions of the Tamil Nadu Co-operative Societies Act - The bye-laws of the Society have clearly shows that the Society has to work and function for the benefit of its members - Unlike any other private organization, the Society operates on the strict parameters in accordance with the provisions of the Tamil Nadu Co-operative Societies Act, 1983 and the Tamil Nadu Co-operative Societies Rules, 1988 - if the entire tax levied is directed to be remitted, it would undoubtedly cause severe financial hardship and it would also cripple their entire activities – assessee has made out a case for grant of interim stay – Stay granted.
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