Case Law Details
Wexco Homes Private Ltd. Vs ACIT (Kerala High Court)
Introduction: In a recent case between Wexco Homes Private Ltd. and the Assistant Commissioner of Income Tax (ACIT), the Kerala High Court directed the Income Tax Department to consider a stay petition regarding penalty proceedings initiated under Section 271A of the Income Tax Act.
Detailed Analysis: Wexco Homes Private Ltd., a private limited company, underwent a search within its business premises under Section 132 of the Income Tax Act. The assessment proceedings for the assessment year 2009-2010 were completed, resulting in a total income assessment of Rs. 6,67,92,468/- and a tax due of Rs. 4,27,12,820/-. Despite the assessment, the company did not deposit any tax amount. Subsequently, penalty proceedings under Section 271A were initiated against the company.
In response, Wexco Homes Pvt Ltd. filed a stay petition before the Appellate Authority seeking relief from the penalty. However, without obtaining a stay, the company approached the Kerala High Court seeking a direction to stay the demand.
The Kerala High Court dismissed the writ petition but directed the Income Tax Department to expedite the consideration of the stay petition filed by Wexco Homes Pvt Ltd. The court emphasized that no interim order was passed staying the recovery or penalty proceedings.
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