IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH. C.W.P. No.13613 of 2009 (O&M) Date of decision: 8.2.2010 The Amritsar Improvement Trust. -----Petitioner. Vs. Assistant Commissioner of Income Tax & others. -----Respondents CORAM:- HON'BLE MR. JUSTICE ADARSH KUMAR GOEL HON'BLE MR. JUSTICE ALOK SINGH Present:- Mr. Rohit Sood, Advocate for the petitioner. Ms. Naveender P.K. Singh, Standing Counsel for the respondents. --- ORDER: 1. This petition, inter-alia, seeks quashing of Notice dated 25.8.2009, Annexure P-11, for recovery of tax assessed from the petitioner. 2. The petitioner is an Improvement Trust constituted under the provisions of the Punjab Town Improvement Act, 1922 and was exempt from the tax under Section 10(20A) of the Income Tax Act, 1961 (for short, “the Act”) upto the assessment year 2002-03 when amendments were made to the Act, necessitating fresh application by the petitioner for seeking exemption. Order dated 22.2.2008 was passed by the Income Tax Appellate Tribunal, as a result of which the petitioner is exempted from tax under Section 12 of the Act. However, as per assessment order dated 25.6.2008, Annexure P-3, for the assessment year 2005-06, demand of tax was raised from the CWP No.13613 of 2009 petitioner, against which appeal was pending before the CIT(A) and application for stay was also made therein. Though initially stay was granted but thereafter, the matter was taken to the Tribunal and thereafter, again remanded to the CIT(A), on account of which, fresh demand was raised. The petitioner filed application for stay, Annexure P-12, but no decision was being taken. 3. Learned counsel for the petitioner submits that till application, Annexure P-12 is decided, it will not be fair to enforce demand against the petitioner. 4. We have heard learned counsel for the parties. 5. Learned counsel for the revenue has no objection if direction is issued for decision of the appeal and also the stay application before the demand is made. 6. Accordingly, we direct the CIT(A) respondent No.3, where the appeal is said to be pending, to take a decision on the stay application and appeal of the petitioner in accordance with law and till such a decision is taken, we direct that demand of tax against the petitioner will not be enforced. 7. The petition is disposed of. (ADARSH KUMAR GOEL) JUDGE February 08, 2010 ( ALOK SINGH ) ashwani JUDGE 2