Wp(C)/12442/2009 Of Noorul Islam Educational Trust v. Dy.commr.of Income Tax,Central Circle-1

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE S.SIRI JAGAN TUESDAY, THE 21ST APRIL 2009 / 1ST VAISAKHA 1931 WP(C).No. 12442 of 2009(A) -------------------------- PETITIONER(S): --------------- NOORUL ISLAM EDUCATIONAL TRUST, REP. BY ITS CHAIRMAN A.P.MAJID KHAN, 10/47, HAJI MANZIAL, MAIN ROAD, THUCKALAY, KANYAKUMARI DISTRICT. BY ADV. SRI.KMV.PANDALAI SMT.S.HEMALATHA RESPONDENT(S): --------------- 1. THE DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-1, TRIVANDRUM. 2. THE COMMISSIONER OF INCOME TAX (APPEALS)-III, ERNAKULAM, KOCHI-16. MR.JOSE JOSEPH, SC, INCOME TAX DEPARTMENT THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 21/04/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: S. SIRI JAGAN, J. ------------------------------------ W.P.(C)No.12442 OF 2009 ---------------------------------------- Dated this the 21[st] day of April, 2009 JUDGMENT The petitioner claims to be a Charitable Trust. The Trustenjoys exemption from income tax by virtue of provisions ofSection 12A of the Income Tax Act. However, despite the same,proceedings have been initiated against the petitioner forassessment of income tax under Section 158 BC for the blockperiod 1.4.1995 to 11.9.2001 in view of certain discrepanciesfound out from the accounts of the petitioner, which according tothe respondents would dis-entitle the petitioner for exemption.Against the order of assessment, the petitioner has filed Ext.P2appeal along with Ext.P2(a) stay petition before the AppellateAuthority. The petitioner is aggrieved by the coerciveproceedings for recovery of the disputed tax pending disposal ofthe stay petition. The petitioner, therefore, challenges recoveryproceedings. 2.I have heard the learned Standing Counsel appearingfor the respondents also. W.P.(c)No.12442/09 3.I am of opinion that when the petitioner has filed anappeal and a stay petition, it is unjust to recover the disputedtax coercively from the petitioner before at least the staypetition is considered by the Appellate Authority. In theabove circumstances, the writ petition is disposed of with thefollowing directions: The 2[nd] respondent shall consider and pass orders onExt.P2(a) stay petition filed by the petitioner along with Ext.P2appeal as expeditiously as possible, at any rate, within aperiod of one month from the date of receipt of a copy of thisjudgment. Till Ext.P2 (a) stay petition is disposed of, furthercoercive proceedings for recovery of the disputed tax shall bekept in abeyance. S. SIRI JAGAN, JUDGE Acd