Wp/24243/2018 Of M/S Sri Devaraj Urs Educational Trust v. The Assistant Commissioner Of Income-Tax

IN THR HIGH COURT OF KARNATAKA AT BENGALURU DATBD THIS THER DAY OF DECEMBER, 2019 BEFORE: THR HON’BLE MRS. JUSTICK S.SUJATHA WRIT PETITION No.24243/2018 (T IT) BETWEEN: M/s SRI DEVARAJ URS EDUCATIONAL TRUSTFOR BACKWARD CLASSES (REGD.)REP BY ITS TRUSTBESRI J.RAJENDRA.AGED ABOUT 59 YEARS,S/O R.L.JALAPPA,TAMAKA, KOLAR - 563 103.... PETITIONER IBY SRI V.CHANDRASHEKAR & SRI M.LAVA, ADVS.|. AND: THE ASSISTANT COMMISSIONEROF INCOME-TAX, CENTRAL CIRCLE -1(4)#306,3 FLOOR,CHNITRAL REVENUE BUILDINGQUEENS ROAD, BENGALURU - 560 OO1. _. RESPONDENT. IBY SRI K.V.ARAVIND, ADV.| THIS WRIT PRTITION [IS FILED UNDER ARTICLES 226 &22/7 OF THE CONSTITUTION OF INDIA, PRAYING TO DIRECTTHE RBSPONDENT NOT TO PASS THE PRHNALTY ORDER UNDERSECTION 271AAB OF THE INCOME TAX ACT, 1961, TILL)DISPOSAL OF THR APPBAL BY THE APPBLLATE AUTHORITIES|AGAINSTTH EASSESSMENTORDER|PASSED.FORTHEASSBKSSMEBNT YBAR 2016-2017 THIS PETITION COMING ON FOR PRELIMINARY HEARING|IN ‘B’ GROUP, THIS DAY, THE COURT MADE THE FOLLOWING:- -9.- ORDER Heard the learned counsel for the parties. 2 |The petitioner has sought for a direction tothe respondent not to pass penalty order under Section2/1AAB of the Income Tax Act, 1961 (‘Act’ for short) tillthe disposal of the appeal by the Appellate Authority forassessment year 2016-17,inter alta,seeking for adeclaration that the notice issued wunder SectionO71AAB ot the Act at Annexure — A is without§jurisdiction. 3.|The petitioner - Trust is an assessee under|the provisions of the Act. It is contended that the Trusthas.establishededucational institutionsand1Sregistered under Section 12A of the Act; the returns ofincome are filed regularly and is being assessed to tax.A search under Section 132 of the Act was conducted|on 06.08.2015, the statements were recorded from.various persons. Pursuant to which the respondent has passed the assessment order relating to the assessment.year in question and initiated penalty proceedingsunder Section 271AAB of the Act. | 4It is submitted that the petitioner beingaggrieved by the assessment order has filed an appealbefore the Appellate Authority - Commissioner ofIncome Tax (Appeals) which is pending. It is thesrievance of the petitioner that despite the request madeto keep the penalty proceedings in abeyance till thedisposal of the appeal before the Appellate Authority,the respondent is proceeding with the same. Hence, thepresent writ petition. 5 |Learned counsel for the petitioner would|submit that the notice impugned at Annexure - A is.without jurisdiction. During the pendency of the appealproceedings, the penalty proceedings ought not to havebeen initiated under Section 2771 AAB ot the Act. -4- 6.|However, learned counsel for the parties|have no objection to dispose of the writ petition with adirection to the Appellate Authority to dispose of theappeal pending against the order of the assessmentdated 30.12.2017 in an expedite manner.| [|In view of the aforesaid and the prayer of thepetitioner being the same, this Court is of theconsidered view that the interest of justice would besub-served in directing the Commissioner of Income Tax(Appeals) — 11, Bengaluru to dispose of the appeal inITANo.220/CIT(A)11/Bengaluru/2017-18inaccordance with law in an expedite manner, in anyevent, not later than twelve weeks from the date ofreceipt of certified copy of the _ order. Ordered|accordingly. Till the disposal of the appeal, the penalty noticeimpugned herein dated 30.12.2017 at Annexure — A is.kept in abeyance. | '�&�'�� �83�H5@7�?37@7@<:� 74:6 �6@ ?< 36�<>�@:�735C �<>� 783�4E<J3���� %��� �����������