Court Directs Prompt Consideration of Rectification Applications, Suspends Coercive Measures

The Court ordered that pending rectification applications be promptly considered by the 3rd respondent, allowing the petitioner a hearing. The 3rd respondent must decide on the rectification petitions within 4 to 6 weeks. Coercive measures enforcing the disputed orders are to be suspended until final decisions are made. The Writ Petition is disposed of with these directives, ensuring a fair review of rectification requests and pausing enforcement actions during the process.

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Issues involved:
1. Disallowance of eligible deduction u/s 80P of the Income Tax Act, 1961.
2. Rectification proceedings initiated under section 154 of the Income Tax Act, 1961.
3. Coercive steps for recovery of disputed tax amount.
4. Pending rectification petitions before the 3rd respondent.
5. Relief sought through the Writ Petition.

Analysis:
1. The petitioner, a primary co-operative society, filed a return of income for the assessment year 2015-16 claiming deduction u/s 80P of the Income Tax Act, 1961. The assessing officer disallowed the deduction and computed the total income at Rs. 41,28,889, issuing a demand notice for Rs. 17,43,640. The petitioner challenged this assessment through a statutory appeal, which was allowed by the 3rd respondent, granting the deduction. However, the 3rd respondent later initiated rectification proceedings under section 154, stating an apparent mistake, and unilaterally allowed the rectification petition, leading to coercive recovery steps by the 1st respondent. Similar issues arose for assessment years 2013-14 and 2008-09, with pending rectification petitions. The Writ Petition seeks to quash the rectification orders and demand letters, and to restrain coercive proceedings until the final disposal of the appeals.

2. The Court, after hearing both parties, ordered that the pending rectification applications will be considered by the 3rd respondent without delay, providing an opportunity for the petitioner to be heard. The 3rd respondent is directed to pass orders on the rectification petitions within 4 to 6 weeks from the date of the judgment. Until the final orders are passed, coercive steps for enforcing the impugned orders are to be kept in abeyance by the concerned respondents. The Writ Petition is finally disposed of with these observations and directions, ensuring a fair consideration of the rectification petitions and halting coercive measures during the process.

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