Stay Application Pending against Penalty u/s 147 of Income Tax Ac: Kerala HC stays Recovery Proceedings [Read Order]

A Single bench of Kerala High Court has Stayed recovery proceedings while disposing the stay application pending gainst the penalty levied under Section 147 of Income Tax Act 1961.

The petitioner, MKD Taluk Government Employees Co-Operative Credit Society Ltd was an assessee under the Income Tax Act, 1961. The petitioner was assessed for Income Tax under the provisions of Section 147 read with Section 144 and 144B of the Income Tax Act, 1961 for the assessment year 2020-2021. The total income and tax of the petitioner was assessed and penalties were levied. Against the said penalty order, the petitioner had filed Ext.P2 appeal and Ext.P3 stay application before the 2nd respondent.

Harisankar V. Menon, on behalf of the petitioner, submits that respondents be directed to take a decision on the stay application. If the decision was not taken, the recovery proceedings in pursuance to Ext.P1 penalty order should not be taken against the petitioner.

Jose Joseph, for the respondents submitted that this writ petition could be disposed of with directions to the appellate authority to consider the application of the petitioner in a time frame manner.

A Single Bench of Justice Dinesh Kumar Singh based upon the aforesaid submission, the 2nd respondent was directed to take up the Ext.P3 application for stay and decide the same expeditiously within a period of two months. For a period of two months, recovery proceedings in pursuance to Ext.P1 should not be carried out against the petitioner.

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