IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH. C.W.P. No. 1944 of 2008 DATE OF DECISION : 11.02.2008 Shahabad Co-operative Sugar Mills Limited, Shahabad .... PETITIONER Versus Commissioner of Income-tax, Karnal and others ..... RESPONDENTS CORAM :- HON'BLE MR. JUSTICE SATISH KUMAR MITTAL HON'BLE MR. JUSTICE RAKESH KUMAR GARG Present: Mr. Rajesh Garg, Advocate, for the petitioner. Mr. Yogesh Putney, Advocate, for the respondents. * * * SATISH KUMAR MITTAL , J. (Oral) The petitioner (assessee) has filed this writ petition under Articles 226/227 of the Constitution of India for issuing direction to the Commissioner of Income-tax (Appeals), Karnal, respondent No.2 herein, to stay the recovery of the disputed amount of penalty during the pendency of the appeal. It is the case of the petitioner that the stay application filed by the petitioner along with the appeal has not been decided. It is the further case of the petitioner that under the Circular No. 530 dated 6.3.1989, when CWP No. 1944 of 2008 -2- the demand in dispute has been decided in favour of the assessee, in an earlier order passed by the Appellate Authority, in that situation, for the subsequent year, the stay should normally be granted during the pendency of the first appeal. After short notice, Mr. Yogesh Putney, Advocate, has put in appearance on behalf of the respondents. He states that the stay application filed by the petitioner has been dismissed. However, he is not in a position to place on record copy of the order to that effect. Mr. Putney has not disputed the fact that for an earlier assessment year, the similar penalty was set aside by the Appellate Authority. Mr. Putney has also not controverted the contents of Circular No. 530 dated 6.3.1989. In view of the above and the facts and circumstances of the case, we direct the Commissioner of Income-tax (Appeals) Karnal to dispose of the appeal filed by the petitioner within a period of two months. Till then, recovery of the disputed amount on account of penalty from the petitioner shall remain stayed. Petition stands disposed of accordingly. ( SATISH KUMAR MITTAL ) JUDGE February 11, 2008 ( RAKESH KUMAR GARG ) ndj JUDGE