Income Tax Recovery Proceedings: Kerala HC directs NFAC to expedite hearing of Appeal and Stay Petition [Read Order]

In a recent judgement, the Kerala High Court (HC) directed the National Faceless Assessment Centre (NFAC) to expedite the hearing of the appeal and stay petition filed in Income Tax recovery proceedings.

Ammujakshi Radhamani, the petitioner prayed for a direction to the 2nd respondent ie, the National Faceless Assessment Centre (NFAC) to dispose of the appeal filed against the assessment order and Stay petition.

Under section 222 of the Income Tax Act, 1961 on a situation of a defaulter, TRO (tax Recovery Officer) will make a statement with his signature stating all amount of arrears in due which is to be called ‘Certificate’ in schedule two. This certificate will be used to recover tax from the defaulter. 

Section 222 prescribes the modes of recovery from the assessee that are very well elaborated in Schedule two of the Income Tax Act as a procedure for when to act further in recovering the income tax.

Rule 4 prescribes the Modes of Recovery’ of Income-tax which states that if the amount mentioned in the notice is not paid within the specified time or whatever time TRO may grant under his discretion. Then the Tax Recovery Officer shall proceed to recover the amount by attachment & sale of the defaulter’s movable/ immovable property, by arrest or detention of the defaulter or by appointing a receiver for the management.

A Single member comprising Justice T R Ravi directed the NFAC to take up the appeal and the stay petition and hear and dispose of the stay petition within two months from the date of receipt of a copy of this judgment. Further held that the coercive steps for recovery shall be kept in abeyance till then.

To Read the full text of the Order CLICK HERE

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