2019 (7) TMI 1223 - HC - Income Tax

Stay petition - seeking refund the tax recovery made - HELD THAT - 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. 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.

Summary

Issues:
Challenge to tax recovery notices seeking refund and direction for appeal disposal.

Analysis:
The petitioner, a Primary Agricultural Credit Co-operative Society, challenged tax recovery notices seeking refund and appeal disposal. The petitioner claimed deduction under Section 80P of the Income Tax Act for the Assessment Year 2016-17. The Assessing Officer disallowed the deduction, leading to an appeal before respondent No.1. Recovery proceedings commenced during the appeal process, prompting the petitioner to seek court intervention. An interim order prevented tax recovery until the appeal's resolution. The appeal before respondent No.1 concluded, resulting in a second appeal before the Income Tax Appellate Tribunal (ITAT). Meanwhile, respondent No.2 recovered the entire demand through the petitioner's bankers, leading to the current grievance before the High Court.

The High Court, after hearing both parties and examining the records, emphasized the importance of justice in directing the ITAT to expedite the appeal's disposal. Consequently, the High Court ordered the ITAT to dispose of ITA No.765/Bang/2019 filed by the petitioner promptly, preferably within eight weeks from the receipt of the order's certified copy. With these directions, the writ petition was disposed of, providing relief to the petitioner and ensuring a swift resolution of the appeal.