A Single Bench of Kerala High Court has directed the National Faceless Appeal Centre (NFAC) to decide the appeal against the demand notice under Section 147 of the Income Tax Act 1961, in a time bound manner.
The assessment proceedings were completed in respect of the income of the petitioner, Prathibha Traders for the assessment years 2017-18 vide order dated 26.03.2022. The total income of the petitioner for the said period had been assessed as under Section 147 read with Section 144 and 144B of the Income Tax Act, 1961. On the said income, demand notice had been issued and penalty proceedings had been directed to be initiated.
Harisankar V. Menon, on behalf of the petitioner submitted that though the appeal had been filed on time, i.e. on 06.04.2023 but, no decision had been taken on the appeal or the stay application and in the meantime the petitioner was facing recovery proceedings in respect of the tax assessed on the income of the petitioner by the order. He further submitted that the 2nd respondent should be directed to decide the appeal and stay application in a time bound manner and till a decision was taken on the application and stay application, no coercive proceedings against the petitioner could be initiated.
Ajith Kumar, appeared on behalf of the revenue.
A Single Bench of Justice Dinesh Kumar Singh disposed the writ petition observing that, “When the appellate authority seized the matter, this Court would not like to exercise its writ jurisdiction parallelly. It would be sufficed to direct the 2nd respondent to decide the appeal pending before it in accordance with the law within a period of two months, and if it is not possible to decide the appeal finally within two months, the stay application be decided within a period of two months from today in accordance with the law.”
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