1 IN HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS 17TH DAY OF MARCH 2020 BEFORE HON'BLE MR.JUSTICE S. SUNIL DUTT YADAV WRIT PETITION No.6153/2020 (T-RES) Between: Primary Agricultural Credit Co-op. Society Ltd., Gonibeedu Village and Post, Mudigere Taluk, Chikmagaluru District 574 132, Rep. by its C.E.O. Mrs. N.B. Lalitha. Petitioner (By Sri Mahesh R. Uppin, Advocate) And: 1. Commissioner of Income Tax (Appeals), Aayakar Bhavan, No.21/16, Residency Road, Nazarbad, Mysuru 570 010. 2. Income Tax Officer, Ward-1, I.T. Office, Court Road, Chikmagaluru 577 101. Respondents (By Sri Jeevan J. Neeralgi, Advocate) This Writ Petition is filed under Articles 226 & 227 of Constitution of India, praying to quash assessment order dated 26.12.2018 passed in order passed by R-2 marked as Annexure-A and notice dated 9.3.2020 issued by R-2 marked as Annexure-F and etc. 2 This Writ Petition coming on for preliminary hearing this day, Court made following: ORDER petitioner who is Primary Agricultural Credit Co-op Society Limited has filed present petition seeking to quash assessment order dated 26.12.2018 passed by second respondent or in alternative has sought for issuance of writ in nature of mandamus directing first respondent to dispose off appeal dated 19.01.2019 within period of three months. 2. It is case of petitioner that it had filed return of income for assessment year 2016-17 declaring Gross Total Income at Rs.36,30,155/- and it had claimed deduction under Section 80P of Income Tax Act, 1961 and hence had declared income as Nil. 3. It is further submitted that in assessment proceedings, interest on investment of Rs.26,05,541/- was considered as income from other sources and hence deduction was restricted to only 25% of income. 3 petitioner submits that as against such assessment order, appeal has been filed and application for stay has been sought before Commissioner of Income Tax, copy of which is produced at Annexure- D . application has also been filed before Assessing Officer as per Annexure- E . 4. It is to be noticed that no decision has been made as regards stay application filed before Appellate Authority, nor has assessing officer disposed off request of petitioner in terms of Section 220 (6) of Income Tax Act, 1961. 5. Needless to state that application for stay is required to be disposed off in light of Circular bearing No.1914, further amended on 25.01.2017, 29.02.2016 and 31.07.2017 and also keeping in mind observations made by High Court of Judicature at Madras in case of M/s. Shriram Finance v. Principal Commissioner of Income Tax (1) and Others (W.P.No.5425/2019 & W.P.Nos.6166 & 6168/2019 decided on 01.03.2019) as well as order of this Court in case of Flipkart India 4 Private Limited v. Assistant Commissioner of Income Tax (W.P.Nos.1339-1342/2017 decided on 23.02.2017). 6. In light of appeal having been filed, question of intervening as regards to assessment order at this stage is not appropriate. However, as regards contention that consideration of application for stay and further exercise of power of PCIT keeping in mind circular bearing No.1914 as amended on 21.5.2017, 29.2.2016 and 31.7.2017, request of petitioner is to be considered in meaningful manner. In fact, power of granting stay has been considered by High Court of Judicature at Madras in case of M/s. Shriram Finance (supra) wherein, certain guidelines have been referred to in para-5 which may be taken note of. So also manner of exercise of power of Principal Commissioner of Income Tax is detailed in Flipkart s case (supra) at paras 18 and 19, which needs to be kept in mind. This Court refrains from expressing any opinion on merits of contentions raised. 5 7. It is further submitted that without disposing off application for stay, proceedings are initiated for recovery of amount in nature of garnishee proceedings as per Annexure- F . 8. In light of discussion made above, noticing that application for stay filed by petitioner is still not been disposed off, proceedings initiated as per Annexure- F could be kept in abeyance and Appellate Authority to dispose off application for stay filed by petitioner and pending before it within period not later than two weeks. petitioner is to be afforded opportunity of hearing as regards his application for stay. In interregnum, proceedings at Annexure- F would be kept in abeyance. Sd/- JUDGE Np/- Primary Agricultural Credit Co-op. Society Ltd. v. Commissioner of Income-tax (Appeals), Mysuru / Income-tax Officer, Ward-1, Chikmagaluru