In a recent ruling, the Kerala high Court has stayed the Recovery cum Garnishee orders issued by the income tax authorities during the pendency of condonation applications on condition of pre-deposit 20% of the assessed tax amount.
The Petitioner, P R Combines filed the writ petition impugning the recovery cum garnishee orders issued by the Assistant Commissioner of Income Tax. The petitioner has filed statutory appeals before the Commissioner of Income Tax (Appeals), with a delay of 433 days. Neither the delay has been condoned, nor the appeals admitted.
Pending consideration of the applications for condonation of delay in filing the appeals, the impugned recovery cum garnishee orders have been issued by the third respondent to recover the assessed tax amount.
The counsel for the petitioner submitted that the petitioner is willing to deposit 20% of the assessed tax amount, subject to the final outcome of the appeals and the recovery cum garnishee orders may not be enforced. The department does not have any objection to the said submission.
The bench of Justice Dinesh Kumar Singh took into account the petitioner’s submissions and directed them to make a 20% deposit of the assessed tax amount within a period of 1 month. Upon completion of the deposit, the appellate authority was further directed to promptly review the applications for condoning the delay and the pending appeals in accordance with law.
It was further directed that until a final decision is reached concerning these applications and appeals, the contested demand notices and recovery cum garnishee orders are to be temporarily suspended and not enforced.
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