2024 (11) TMI 173 - HC - Income Tax

Stay petition - application was partly allowed by directing the petitioner to deposit 20% of the demand - Contention of petitioner that the learned appellate authority was totally guided by CBDT Office Memorandums dated 29.02.2016 and 31.07.2017 and directed the petitioner to deposit 20% of outstanding demand and here is no whisper or iota of discussion about exemption notifications - HELD THAT - Prima facie reading of Annexures-P.9 and P.10 shows that petitioner could make out a prima facie case. Sadly, the appellate authority has not taken any pain to consider the singular contention raised by the petitioner based on these notifications. Thus, in the peculiar facts of this case, we deem it proper to restrain the respondents from taking any coercive action against the petitioner, pursuant to assessment order, during the pendency of the appeal. Accordingly, this writ Petition is disposed of. It is made clear that this Court has not expressed any opinion on the merits of the case. It will be open for the appellate authority to adjudicate the appeal on its own merits.

Summary

The High Court of Telangana heard a petition under Article 226 of the Constitution of India challenging an income tax assessment order. The petitioner, a statutory board, was exempted from paying income tax by notifications but the appellate authority did not consider these exemptions. The court restrained any coercive action against the petitioner during the appeal, emphasizing the need for the appellate authority to consider the exemptions. The writ petition was disposed of with no costs.