The Amritsar Improvement Trust v. Assistant Commissioner Of Income Tax & Others

IN THE HIGH COURT OF PUNJAB AND HARYANA ATCHANDIGARH. C.W.P. No.13613 of 2009 (O&M)Date of decision: 8.2.2010 The Amritsar Improvement Trust. -----Petitioner. Vs. Assistant Commissioner of Income Tax & others. -----Respondents CORAM:- HON'BLE MR. JUSTICE ADARSH KUMAR GOELHON'BLE MR. JUSTICE ALOK SINGHPresent:-Mr. Rohit Sood, Advocate for the petitioner. Ms. Naveender P.K. Singh, Standing Counselfor the respondents. --- ORDER: 1. This petition, inter-alia, seeks quashing of Noticedated 25.8.2009, Annexure P-11, for recovery of tax assessed from the petitioner. 2. The petitioner is an Improvement Trust constitutedunder the provisions of the Punjab Town Improvement Act, 1922and was exempt from the tax under Section 10(20A) of theIncome Tax Act, 1961 (for short, “the Act”) upto the assessmentyear 2002-03 when amendments were made to the Act,necessitating fresh application by the petitioner for seekingexemption. Order dated 22.2.2008 was passed by the IncomeTax Appellate Tribunal, as a result of which the petitioner isexempted from tax under Section 12 of the Act. However, as perassessment order dated 25.6.2008, Annexure P-3, for theassessment year 2005-06, demand of tax was raised from the petitioner, against which appeal was pending before the CIT(A)and application for stay was also made therein. Though initiallystay was granted but thereafter, the matter was taken to theTribunal and thereafter, again remanded to the CIT(A), onaccount of which, fresh demand was raised. The petitioner filedapplication for stay, Annexure P-12, but no decision was beingtaken. 3. Learned counsel for the petitioner submits that tillapplication, Annexure P-12 is decided, it will not be fair to enforcedemand against the petitioner. 4. We have heard learned counsel for the parties. 5. Learned counsel for the revenue has no objection ifdirection is issued for decision of the appeal and also the stayapplication before the demand is made. 6. Accordingly, we direct the CIT(A) respondent No.3,where the appeal is said to be pending, to take a decision on thestay application and appeal of the petitioner in accordance withlaw and till such a decision is taken, we direct that demand of taxagainst the petitioner will not be enforced. 7. The petition is disposed of. (ADARSH KUMAR GOEL) JUDGE February 08, 2010ashwani ( ALOK SINGH ) JUDGE