- (1.) THE Petitioner is a Cooperative Bank. For the assessment year 2008 -09, it filed the return declaring a total income of Rs. 2, 27, 08, 050/ -on 30.9.2008. The Assessing Officer made huge addition to the declared income and assessed the Petitioner -bank on total income of Rs. 17, 77, 23, 570/ -. The AO also directed to issue penalty notice under Section 271(1)(c) of the Income Tax Act, 1961 (in short the Act).
(2.) THE Petitioner -bank has preferred an appeal before the CIT (Appeals), which is pending. The AO has, by his order dated 3.3.2011 with reference to the application dated 31.1.2011 filed by the Petitioner, directed it to pay 50% of demand by 15.3.2011, and had stayed the remaining demand till decision of the first appeal.
(3.) IT is contended by Shri Shakeel Ahmad, learned Counsel for the Petitioner, that the stay application filed by the Petitioner on 15.3.2011 for staying the demand under Section 156 of the Act is still pending with CIT (Appeals); and that an application under Section 154 of the Act has also been filed on 16.8.2011. The bank has also approached by way of abandoned caution CIT (Admin) for staying the demand and not to treat the bank as defaulter. Pending these applications, a notice under Section 226(3) of the Act has been issued to the Allahabad Bank, Main Branch, Orai and the Branch Manager, Allahabad Bank, Orai Branch, Orai, Jalaun (UP) for recovering Rs. 5, 19, 47, 797/ -.;