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2019 (5) TMI 1662 - HC - Income TaxStay petition - Petitioner is a primary credit society which has been issued with assessment order under the Income Tax Act - as contended that demands are being raised in terms of the assessment orders - HELD THAT - The appeal preferred by the petitioner institution is liable to be considered and disposed of on merits before proceeding with the recovery of amounts in terms of the orders passed by the assessment authority. There will be a direction to the 2nd respondent appellate authority to take up consider and pass appropriate orders on Exhibit P2 appeal preferred by the petitioner and to dispose of the same in accordance with law at the earliest at any rate within three months from the date of receipt of a copy of this judgment. Till orders are passed on the appeal as directed above coercive proceedings on the basis of the original order shall be kept in abeyance.
Issues:
1. Assessment order issued under the Income Tax Act to a primary credit society. 2. Petitioner's appeal against the assessment order and stay petition. 3. Coercive recovery proceedings initiated based on the assessment order. Analysis: 1. The petitioner, a primary credit society, received an assessment order under the Income Tax Act. The petitioner, dissatisfied with the assessment, filed a statutory appeal (Exhibit P2) before the 2nd respondent appellate authority. Additionally, a stay petition (Exhibit P3) was also submitted by the petitioner. However, the petitioner raised concerns about the demands being enforced as per the assessment orders. 2. After hearing arguments from the petitioner's counsel and the standing counsel for the respondents, the court opined that the appeal filed by the petitioner should be considered and decided on its merits before any recovery actions are taken based on the assessment order issued by the authority. 3. Consequently, the court directed the 2nd respondent appellate authority to promptly review, consider, and make appropriate decisions on the petitioner's appeal (Exhibit P2) in compliance with the law within three months from the date of receiving a copy of the judgment. The court further ordered that coercive recovery proceedings stemming from the original order should be suspended until a decision is made on the appeal as instructed. In conclusion, the court granted the writ petition in favor of the petitioner, emphasizing the importance of addressing the appeal before pursuing any coercive actions related to the assessment order.
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