IN HIGH COURT OF KERALA AT ERNAKULAM PRESENT HONOURABLE MR. JUSTICE A.K.JAYASANKARAN NAMBIAR THURSDAY, 26TH DAY OF SEPTEMBER 2019/4TH ASWINA, 1941 WP(C).No.20331 OF 2019(N) PETITIONER: KUTTIYERI SERVICE CO-OPERATIVE BANK LTD NO. 1266, KUTTYERI P.O, KANNUR DISTRICT, REPRESENTED BY ITS SECRETARY. BY ADV. SRI.O.D.SIVADAS RESPONDENTS: 1 COMMISSIONER OF INCOME TAX (APPEALS) AYAKAR BHAVAN, KOZHIKODE - 673 001. 2 PRINCIPAL COMMISSIONER OF INCOME TAX, AYAKAR BHAVAN, KOZHIKODE - 673 001. 3 INCOME TAX OFFICER, WARD (4), KANNUR, PIN 670 001. BY SRI.CHRISTOPHER ABRAHAM, SC THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 26.09.2019, COURT ON SAME DAY DELIVERED FOLLOWING: W.P.(C).No.20331/2019 : 2 : JUDGMENT petitioner, Co-operative society registered under Kerala Co-operative Societies Act, had furnished returns for assessment year 2016-17, and claimed benefit under Section 80P(2) of Income Tax Act. assessment was completed by Assessing Authority finding that total income for assessment year was Rs.32,16,495/-. claim for deduction under Section 80P(2) was rejected by stating that petitioner was not entitled to said benefit. Against Ext.P1 order of assessment, petitioner preferred appeal before 1st respondent, and with view to obtaining stay of recovery, pending disposal of appeal, petitioner had approached 3rd respondent under Section 220(6) of Income Tax Act. said application was forwarded by 3 rd respondent to 2nd respondent, who passed Ext.P4 order directing payment of 20% of tax demand as condition for stay of recovery of balance amounts confirmed against petitioner by Ext.P1 order. 2. In writ petition, Ext.P4 order is impugned inter alia on W.P.(C).No.20331/2019 : 3 : contention that, in similar matters, taking note of decision of this Court in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax, Calicut - [2019 (2) KHC 287 (FB)], assessee has been granted complete stay of recovery of amounts demanded pursuant to disallowed deduction under Section 80(P)(2) pending disposal of appeal by Appellate authority. Taking cue from said orders passed by this Court, I dispose writ petition by directing 1 st respondent to consider and pass orders on Ext.P2 appeal preferred by petitioner, on merits, within outer time limit of six months from date of receipt of copy of this judgment, after hearing petitioner. It is made clear that till such time as orders are passed by 1 st respondent, as directed, and order communicated to petitioner, recovery steps for recovery of tax, pursuant to Ext.P1 assessment order, shall be kept in abeyance. petitioner shall produce copy of writ petition together with copy of this judgment, before 1st respondent, for further action. Sd/- A.K.JAYASANKARAN NAMBIAR JUDGE prp/26/9/19 W.P.(C).No.20331/2019 : 4 : APPENDIX PETITIONER'S EXHIBITS: EXHIBIT P1 COPY OF ASSESSMENT ORDER DATED 13-12-2018 ISSUED BY 3RD RESPONDENT FOR PERIOD 2016-17. EXHIBIT P2 COPY OF APPEAL FILED BY PETITIONER BEFORE 1ST RESPONDENT DATED 26-01-2019 FOR PERIOD 2016-17. EXHIBIT P3 COPY OF STAY PETITION DATED 15-01-2019 FILED BEFORE 3RD RESPONDENT FOR PERIOD 2016-17. EXHIBIT P4 COPY OF PROCEEDING DATED 27-03-2019 ISSUED BY 2ND RESPONDENT IN STAY PETITION FILED IN RELATION TO ASSESSMENT PERIOD 2016-17. RESPONDENTS EXHIBITS: NIL. //TRUE COPY// P.S. TO JUDGE Kuttiyeri Service Co-Operative Bank Ltd. v. Commissioner of Income-tax (Appeals), Kozhikode/ Principal Commissioner of Income-tax, Kozhikode/ Income-tax Officer, Ward (4), Kannur