Noorul Islam Educational Trust vs The Deputy Commissioner Of Income … on 21 April, 2009

       

  

  

 
 
  IN THE HIGH COURT OF KERALA AT ERNAKULAM

WP(C).No. 12442 of 2009(A)


1. NOORUL ISLAM EDUCATIONAL TRUST,
                      ...  Petitioner

                        Vs



1. THE DEPUTY COMMISSIONER OF INCOME TAX,
                       ...       Respondent

2. THE COMMISSIONER OF INCOME TAX

                For Petitioner  :SRI.KMV.PANDALAI

                For Respondent  : No Appearance

The Hon'ble MR. Justice ANTONY DOMINIC

 Dated :21/04/2009

 O R D E R
                       S. SIRI JAGAN, J.
                ------------------------------------
                  W.P.(C)No.12442 OF 2009
              ----------------------------------------
                Dated this the 21st day of April, 2009

                           JUDGMENT

The petitioner claims to be a Charitable Trust. The Trust

enjoys exemption from income tax by virtue of provisions of

Section 12A of the Income Tax Act. However, despite the same,

proceedings have been initiated against the petitioner for

assessment of income tax under Section 158 BC for the block

period 1.4.1995 to 11.9.2001 in view of certain discrepancies

found out from the accounts of the petitioner, which according to

the respondents would dis-entitle the petitioner for exemption.

Against the order of assessment, the petitioner has filed Ext.P2

appeal along with Ext.P2(a) stay petition before the Appellate

Authority. The petitioner is aggrieved by the coercive

proceedings for recovery of the disputed tax pending disposal of

the stay petition. The petitioner, therefore, challenges recovery

proceedings.

2. I have heard the learned Standing Counsel appearing

for the respondents also.

W.P.(c)No.12442/09 2

3. I am of opinion that when the petitioner has filed an

appeal and a stay petition, it is unjust to recover the disputed

tax coercively from the petitioner before at least the stay

petition is considered by the Appellate Authority. In the

above circumstances, the writ petition is disposed of with the

following directions:

The 2nd respondent shall consider and pass orders on

Ext.P2(a) stay petition filed by the petitioner along with Ext.P2

appeal as expeditiously as possible, at any rate, within a

period of one month from the date of receipt of a copy of this

judgment. Till Ext.P2 (a) stay petition is disposed of, further

coercive proceedings for recovery of the disputed tax shall be

kept in abeyance.

S. SIRI JAGAN, JUDGE

Acd

W.P.(c)No.12442/09 3