HC does not Exercise Parallel Jurisdiction of CIT to entertain Stay Application: Kerala HC dismisses Writ Petition challenging Stay of Income Tax Demand [Read Order]
Kerala HC – Income Tax Demand – Stay Application – Writ Petition – taxscan
Kerala HC – Income Tax Demand – Stay Application – Writ Petition – taxscan
The Kerala High Court dismissed writ petition challenging stay of income tax demand and observed that the High Court does not exercise parallel jurisdiction of Commissioner of Income Tax (CIT) to entertain stay application.
The present writ petition has been filed under Article 226 of the Constitution of India to stay all further proceedings till the disposal of the appeal filed by the petitioner. Alternatively it has been prayed the direction given to the 4 th respondent to consider and dispose of stay application filed by the petitioner in appeal, without pre-deposit of 20% of disputed tax demand.
The petitioner’s wife late Swarna Manmadhan Nair, an assessee under the provisions of the Income Tax Act, filed her return of income for the assessment year 2020-21 on 10.01.2021 declaring the total income of Rs.4,96,480/- and declared agriculture income of Rs.57,45,941/-.
The assessment order was finalised on 13.09.2022, and addition of Rs.57,45,941/- was made under the provisions of Section 69A of the Income Tax Act, as the assessee could not restrain the said receipt of Rs.57,45,941/- which was shown in the return as the income from agriculture. Total assessed income of the assessee was assessed as Rs.62,42,421/- on which tax and penalty were imposed. The petitioner being husband of the assessee as the assessee had died in the meantime, challenged the said order in appeal. The present writ petition has been filed for staying the demand.
A Single Bench of Justice Dinesh Kumar Singh observed that “This Court fails to understand that how this writ petition is maintainable before this Court. This Court does not exercise the parallel jurisdiction of the Appellate Authority to entertain the stay application while the petitioner has not chosen to file the stay application in the appeal itself. Thus I find no ground to entertain this writ petition. Therefore, the writ petition is hereby dismissed. However, the Appellate Authority is directed to proceed with the appeal expeditiously and finalise the same, preferably within a period of six months, in accordance with law.”
To Read the full text of the Order CLICK HERE
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