The Kerala High Court directed the Income Tax Department to consider tax petition in the matter regarding the initiation of penalty proceedings under Section 271A of the Income Tax Act, 1961.
The petitioner is a private limited company registered under the provisions of the Companies Act. A search was conducted within the business premises of the petitioner under Section 132 of the Income Tax Act. The assessment proceedings for the assessment year 2009-2010 got completed order dated 31.12.2016 under the provisions of Section 143(3) read with Section 147 of the Income Tax Act, 1961. The total income which was assessed in the hands of the petitioner was Rs.6,67,92,468/- and on which the due tax had been assessed at Rs.4,27,12,820/-.
The petitioner has not deposited a single penny on the said tax assessed vide assessment order dated 31.12.2016. Against the said assessment order, the petitioner has filed appeal in 2017 but without any stay application. The penalty proceedings have been initiated under Section 271A against the petitioner, and the petitioner is facing recovery proceedings.
A Single Bench of Justice Dinesh Kumar Singh observed that “At this stage, the petitioner has filed the stay petition recently before the Appellate Authority. However, the petitioner has approached this Court seeking a direction to stay the demand.”
“This Court finds absolutely no ground to entertain this writ petition on the facts stated above. Therefore, the writ petition is dismissed. However, the 2nd respondent is directed to consider the stay petition expeditiously, preferably within a period of four months. It is made clear that no interim order has been passed by this Court staying the recovery or the penalty proceedings” the Court noted.
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