Income Assessed Exempt under Income Tax Act being Agricultural Income: Kerala HC directs to pass Orders on Stay Petitions [Read Order]

The Kerala High Court directed to pass orders on stay petitions as the income assessed was exempt from tax under the Income Tax Act, 1961 being agricultural income.

The petitioner suffered orders of assessment for the assessment years 2018-19, and 2020-21 under the Income Tax Act, 1961. The petitioner has preferred appeals against the order of assessments t. The petitioner has also preferred stay petitions in the appeals.

The counsel for the petitioner submitted that there may be a direction to the third respondent to consider and pass orders on the stay applications, after affording an opportunity of hearing to the petitioner and that the garnishee proceedings issued against the banks may be withdrawn, pending consideration of the stay petitions by the third respondent.

A Single Bench of Justice Gopinath P observed that “Having heard the counsel for the petitioner, the learned Standing Counsel appearing for the respondent Department and having regard to the facts and circumstances of the case and considering the submission of the learned counsel for the petitioner that the entire income assessed is exempt from taxation under the Income Tax Act, 1961 on account of the same being completely agricultural income, this writ petition will stand disposed of directing the third respondent to consider and pass orders on stay petitions, after affording an opportunity of hearing to the petitioner. Any garnishee proceedings issued to the petitioner shall be withdrawn till orders are passed on the stay petitions. Thereafter, the parties shall be governed by the orders to be passed in the stay petitions by the third respondent.”

To Read the full text of the Order CLICK HERE

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