BELVE VYAVASAYA SEVA SAHAKARI SANGHA LTD., V. COMMISSIONER OF INCOME TAX (APPEALS)

WP/9790/2023

AI Insights

The case involves Belve Vyavasaya Seva Sahakari Sangha Ltd., a primary co-operative society, which filed a writ petition against the Commissioner of Income Tax (Appeals) and other officials. The petitioner sought a directive to expedite the disposal of their appeal regarding an imposed penalty and to keep the tax demand in abeyance until the appeal's resolution. The petitioner had previously filed their income tax return declaring a 'Nil' income and faced an assessment and penalty, which they contested through appeals. The court's decision favored the petitioner by suspending the penalty enforcement until the appeal is resolved.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 752634 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 01-06-2023
• Assessment Year: misc
• Laws Referred To: Articles 226 and 227 of the Constitution of India, Section 246A of the I.T. Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: E I SANMATHI
• Assessee Lawyers: MAHESH UPPIN
• Keywords: Appeal; Assessment Order; Income Tax; Penalty; Stay of demand
• Section: 246A; 226; 227

Judgement Text

" - 1 - WP No. 9790 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 1ST DAY OF JUNE, 2023 BEFORE THE HON'BLE MR JUSTICE S SUNIL DUTT YADAV WRIT PETITION NO. 9790 OF 2023 (T-IT) BETWEEN: BELVE VYAVASAYA SEVA SAHAKARI SANGHA LTD., (REGD UNDER KCS ACT, 1959) BELVE, HEBRI TALUK, UDUPI DISTRICT 576223 REP BY CEO KEETHI KUMAR SHETTY A …PETITIONER (BY SRI. MAHESH R UPPIN., ADVOCATE) AND: 1. COMMISSIONER OF INCOME TAX (APPEALS) NATIONAL FACELESS APPEAL CENTRE ROOM NO 356, C R BUILDING I P ESTATE NEW DELHI 110002 2. ASSESSING OFFICER NATIONAL FACELESS ASSESSMENT CENTRE, DELHI 110002 3. INCOME TAX OFFICER WARD 1 AND TPS, AAYAKAR BHAVAN AADI-UDUPI MALPE ROAD UDUPI 576103 …RESPONDENTS (BY SRI. E.I.SANMATHI, ADVOCATE) Digitally signed by VIDYA G R Location: High Court of Karnataka - 2 - WP No. 9790 of 2023 THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO DIRECT R1 TO DISPOSE OF THE APPEAL DT. 18.04.2023 MARKED AS ANNX-D BEARING ACKNOWLEDGMENT NO. 119463200180423 FILED BY THE PETITIONER WITHIN A PERIOD OF THREE MONTHS AND TILL THE DISPOSAL OF THE SAID APPEAL NOT TO MAKE ANY DEMAND OF INCOME TAX FROM THE PETITIONER. OR IN THE ALTERNATIVE DIRECT THE R1 TO PASS ORDERS ON APPLICATION FOR STAY DT. 18.04.2023 BEARING NO. NIL MARKED AS ANNX-E OR DIRECT THE R2 TO CONSIDER THE APPLICATION DT. 19.04.2023 BEARING NO. NIL MARKED AS ANNX-F MADE BY THE PETITIONER TO KEEP THE DEMAND IN ABEYANCE TILL THE DISPOSAL OF THE APPEAL AND ETC. THIS PETITION, COMING ON FOR ORDERS, THIS DAY, THE COURT MADE THE FOLLOWING: ORDER The petitioner, which is a Primary Co-operative Society has sought for issuance of a writ in the nature of mandamus to direct the respondent No.1 to dispose of the appeal at Annexure-D within a period of three months and not to make any demand in the inter alia. Further, the petitioner has also sought for appropriate direction to the respondent No.1 to pass orders on the application for stay dated 18.04.2023 and in the alternative to direct the respondent No.2 to consider the application dated 19.04.2023 at Annexure-F and to keep the demand in abeyance till disposal of the appeal. 2. The admitted facts are that the petitioner has filed its return of income for the assessment year 2021 and claiming - 3 - WP No. 9790 of 2023 deduction and accordingly, has declared the total income as 'Nil'. The Assessment Order has been passed at Annexure-A and order levying penalty is passed, copy of which is enclosed at Annexure-B and Notice of demand is enclosed at Annexure-C. 3. It is not in dispute that the petitioner has filed an appeal on 18.04.2023 against the order imposing penalty. It is further submitted that a statutory appeal under Section 246A of the I.T.Act against order of assessment has also been filed on 16.04.2023. It comes out from the narration of facts that applications seeking stay of demand has been filed on 18.04.2023 and 19.04.2023 (Annexures-E and F). The learned counsel for the petitioner submits that no order has been passed on the application seeking for stay either against the Assessment Order or the Penalty Order. 4. Sri. E.I.Sanmathi, learned counsel submits that appeal would be considered in due course taking note of the seniority of the appeal as against other pending matters and submits that in the interregnum, the order in penalty may be directed to be kept in abeyance. - 4 - WP No. 9790 of 2023 5. The petition is disposed of directing the respondents not to enforce the order of penalty till the appeal filed by the petitioner is disposed off. Accordingly, the order and the Notice of demand dated 28.03.2023 (Annexures-B and C) are kept in abeyance and the respondents are restrained from enforcing the order of penalty till the appeal filed by the petitioner is disposed off. Sd/- JUDGE RB "