Statutory appellate remedy governs challenge to denial of Section 80P deduction, with writ relief declined

A writ challenge to an assessment order denying Section 80P deduction was not entertained, as the dispute was already being pursued in connected matters and was directed to proceed through the statutory appellate mechanism. The Court treated the appellate remedy as the proper forum for testing the assessment, rather than stopping the matter at the writ stage. The petition was dismissed without examination on merits, with liberty to file the first appeal and with interim protection against recovery.

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Issues: Whether the writ petition challenging the assessment order denying deduction under Section 80P of the Income-tax Act, 1961 should be entertained or the petitioner should be relegated to the statutory appellate remedy.

Analysis: The assessment was challenged on the ground that the petitioner, a co-operative credit society, was entitled to deduction under Section 80P. The Court noted that the issue had already been considered in connected matters and that the dispute was still being agitated further. In that situation, the Court held that the matter should be permitted to reach its logical conclusion through the statutory appellate mechanism and should not be halted at the assessment stage.

Conclusion: The writ petition was not entertained on merits and was dismissed, with liberty to pursue the statutory first appeal and interim protection against recovery.

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