Shahabad Co-Operative Sugar Mills Limited, Shahabad v. Commissioner Of Income-Tax, Karnal And Others

IN THE HIGH COURT OF PUNJAB AND HARYANA ATCHANDIGARH. C.W.P. No. 1944 of 2008DATE OF DECISION : 11.02.2008 Shahabad Co-operative Sugar Mills Limited, Shahabad .... PETITIONER Versus Commissioner of Income-tax, Karnal and others ..... RESPONDENTS CORAM :- HON'BLE MR. JUSTICE SATISH KUMAR MITTALHON'BLE MR. JUSTICE RAKESH KUMAR GARG Present:Mr. Rajesh Garg, Advocate, for the petitioner. Mr. Yogesh Putney, Advocate,for the respondents. * * * SATISH KUMAR MITTAL , J. (Oral) The petitioner (assessee) has filed this writ petition underArticles 226/227 of the Constitution of India for issuing direction to theCommissioner of Income-tax (Appeals), Karnal, respondent No.2 herein, tostay the recovery of the disputed amount of penalty during the pendency ofthe appeal. It is the case of the petitioner that the stay application filed bythe petitioner along with the appeal has not been decided. It is the furthercase of the petitioner that under the Circular No. 530 dated 6.3.1989, when the demand in dispute has been decided in favour of the assessee, in anearlier order passed by the Appellate Authority, in that situation, for thesubsequent year, the stay should normally be granted during the pendencyof the first appeal. After short notice, Mr. Yogesh Putney, Advocate, has put inappearance on behalf of the respondents. He states that the stay applicationfiled by the petitioner has been dismissed. However, he is not in a positionto place on record copy of the order to that effect. Mr. Putney has notdisputed the fact that for an earlier assessment year, the similar penalty wasset aside by the Appellate Authority. Mr. Putney has also not controvertedthe contents of Circular No. 530 dated 6.3.1989. In view of the above and the facts and circumstances of thecase, we direct the Commissioner of Income-tax (Appeals) Karnal todispose of the appeal filed by the petitioner within a period of two months.Till then, recovery of the disputed amount on account of penalty from thepetitioner shall remain stayed. Petition stands disposed of accordingly. ( SATISH KUMAR MITTAL )JUDGE ( RAKESH KUMAR GARG )JUDGE