CONSOLIDATED COFFEE LTD. vs AGRL.INCOME-TAX OFFICER,MADIKERI .

The Supreme Court examined the applicability of Sections 41 and 42 of the Karnataka Agricultural Income-Tax Act, 1957, in relation to the imposition of penalties for non-payment of tax during the period of stay granted by the Appellate Authority. The Court held that the stay order does not exempt the assessee from penalty for the period after the stay was vacated and the appeals were dismissed, affirming the Division Bench's ruling that the assessee is liable for penalty during the intervening period. The judgment clarified the interpretation of default under the Act in the context of stay orders.