1 IN HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS 19TH DAY OF MARCH, 2020 BEFORE HON'BLE MR.JUSTICE S. SUNIL DUTT YADAV WRIT PETITION No.4636/2020 (T-IT) Between: Mr. Sayed Wajid Shah Hussaini S/o. Syed Khalander Shah Hussaini, Old Mosque Road, Arehalli, Belur Taluk, Hassan 573 101. Petitioner (By Sri. Mahesh R. Uppin, Advocate) And: 1. Commissioner of Income Tax (Appeals) Aayakar Bhavan, No.21/6, Residency Road, Nazarbad, Mysuru 575 010. 2. Income Tax Officer Ward 2, Aayakar Bhavan, 2nd Stage, Belur Road, Hassan 573 201. Respondents (By Sri. Jeevan J. Neeralgi, Adv. and Sri. E. I. Sanmathi, Adv.) 2 This Writ Petition is filed under Articles 226 and 227 of Constitution of India, praying to direct 1st respondent to dispose off appeal dt. 22.01.2020 marked as Annexure D bearing acknowledgment No. 294336471220120 filed by petitioner within period of three months and till disposal of said appeal, not to make any demand of tax. This Writ Petition coming on for preliminary hearing this day, Court, made following: ORDER Petitioner is stated to be agriculturist growing coffee and pepper and had filed his return of income for assessment year 2017-18. agricultural income was declared as Rs.11,01,500/- and total income was declared as nil. It is submitted that petitioner s case was selected for limited scrutiny by department and sale consideration of Rs.39,50,000/- paid by petitioner to his vendor with respect to purchase transaction relating to purchase of 9.16 acres of agricultural land has been taken note of and as petitioner is stated to have had no source of income to purchase demand draft on 04.01.2017, said 3 amount utilised for payment of demand draft was taken as unexplained investment. 2. It is submitted that after assessment order was passed, petitioner is stated to have filed appeal before 1st respondent. It is further submitted that petitioner has filed application for stay and on said application no orders are passed till date. Copy of application filed before Commissioner of Income Tax (Appeals) is enclosed as Annexure-E and so also copy of application seeking for demand to be kept in abeyance filed before Assessing Officer is enclosed at Annexure-F. 3. Petitioner contends that without passing any order on application for stay, Department is seeking to enforce demand as per Annexure-B. 4. In light of appeal having been filed, question of intervening as regards to assessment 4 order at this stage is not appropriate. However, as regards contention that consideration of application for stay and further exercise of power of PCIT keeping in mind circular bearing No.1914 as amended on 21.5.2017, 29.2.2016 and 31.7.2017, request of petitioner is to be considered in meaningful manner. In fact, power of granting stay has been considered by High Court of Judicature at Madras in case of M/s. Shriram Finance (supra) wherein, certain guidelines have been referred to in para-5 which may be taken note of. So also manner of exercise of power of Principal Commissioner of Income Tax is detailed in Flipkart s case (supra) at paras 18 and 19, which needs to be kept in mind. This Court refrains from expressing any opinion on merits of contentions raised. 5. In light of above, as application for stay in appeal at Annexure-E cannot be kept in 5 abeyance indefinitely, same is to be considered expeditiously within period not later than three weeks from date of release of this order. In peculiar facts and circumstances of case, Appellate Authority to consider request for disposal of appeal expeditiously. In interregnum, there would be stay of demand at Annexure-B till Appellate Authority considers application of petitioner for stay. Accordingly, petition is disposed off. Sd/- JUDGE VP Sayed Wajid Shah Hussaini v. Commissioner of Income-tax (Appeals), Mysuru / Income-tax Officer Ward 2, Hassan