IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE S.SIRI JAGAN TUESDAY, THE 21ST APRIL 2009 / 1ST VAISAKHA 1931 WP(C).No. 12442 of 2009(A) -------------------------- PETITIONER(S): --------------- NOORUL ISLAM EDUCATIONAL TRUST, REP. BY ITS CHAIRMAN A.P.MAJID KHAN, 10/47, HAJI MANZIAL, MAIN ROAD, THUCKALAY, KANYAKUMARI DISTRICT. BY ADV. SRI.KMV.PANDALAI SMT.S.HEMALATHA RESPONDENT(S): --------------- 1. THE DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-1, TRIVANDRUM. 2. THE COMMISSIONER OF INCOME TAX (APPEALS)-III, ERNAKULAM, KOCHI-16. MR.JOSE JOSEPH, SC, INCOME TAX DEPARTMENT THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 21/04/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: S. SIRI JAGAN, J. ------------------------------------ W.P.(C)No.12442 OF 2009 ---------------------------------------- Dated this the 21st day of April, 2009 JUDGMENT The petitioner claims to be a Charitable Trust. The Trust enjoys exemption from income tax by virtue of provisions of Section 12A of the Income Tax Act. However, despite the same, proceedings have been initiated against the petitioner for assessment of income tax under Section 158 BC for the block period 1.4.1995 to 11.9.2001 in view of certain discrepancies found out from the accounts of the petitioner, which according to the respondents would dis-entitle the petitioner for exemption. Against the order of assessment, the petitioner has filed Ext.P2 appeal along with Ext.P2(a) stay petition before the Appellate Authority. The petitioner is aggrieved by the coercive proceedings for recovery of the disputed tax pending disposal of the stay petition. The petitioner, therefore, challenges recovery proceedings. 2. I have heard the learned Standing Counsel appearing for the respondents also. W.P.(c)No.12442/09 2 3. I am of opinion that when the petitioner has filed an appeal and a stay petition, it is unjust to recover the disputed tax coercively from the petitioner before at least the stay petition is considered by the Appellate Authority. In the above circumstances, the writ petition is disposed of with the following directions: The 2nd respondent shall consider and pass orders on Ext.P2(a) stay petition filed by the petitioner along with Ext.P2 appeal as expeditiously as possible, at any rate, within a period of one month from the date of receipt of a copy of this judgment. Till Ext.P2 (a) stay petition is disposed of, further coercive proceedings for recovery of the disputed tax shall be kept in abeyance. S. SIRI JAGAN, JUDGE Acd W.P.(c)No.12442/09 3