The Kerala High Court ordered the demands to be stayed until the stay petition is disposed as the appeal against the assessment order was passed under the Income Tax Act, 1961.
The petitioner has approached this court seeking a limited relief. The petitioner has filed an appeal against the order of assessment under the Income Tax Act, 1961 before 2nd respondent together with the application for stay. The only relief sought for by the petitioner is to stay of the demands in terms of the assessment order passed by the 1st respondent till the stay petition is decided by the 2 nd respondent.
Every taxpayer has to furnish the details of his income to the Income-tax Department. These details are to be furnished by filing up his return of income. Once the return of income is filed up by the taxpayer, the next step is the processing of the return of income by the Income Tax Department.
The Income Tax Department examines the return of income for its correctness. The process of examining the return of income by the Income-Tax department is called as “Assessment”. Assessment also includes re-assessment and best judgment assessment under section 144.
A Single Bench of Justice Gopinath P observed that “Having regard to the limited nature of the reliefs sought for by the petitioner, this writ petition will stand disposed of directing that any demands in terms of the assessment order shall not be enforced till a decision is taken on the stay petition by the 2nd respondent. The 2nd respondent shall endeavour to take a decision on the stay petition within a period of two months from the date of receipt of a certified copy of this judgment.”
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