The Kerala High Court directed the income tax appellate authority to Keep the recovery proceedings in abeyance till the disposal of stay petitions or Income Tax appeals. The court modified the impugned judgment of the Single Judge to the limited extent of clarifying that recovery proceedings are stayed till pending disposal of the stay petitions or appeals whichever is earlier by the appellate authority.
The appellant, M/S Wexco Homes Private Ltd challenged the order before the Court in the writ petition when confronted with recovery steps for recovery of the amounts confirmed against it by the order. It was the case of the appellant that against the order, it has preferred an appeal along with a stay petition before the 2nd respondent, the Appellate Authority.
In the meantime, coercive steps were taken for the realisation of the demands. Therefore, the appellant preferred WP(C) No. 3483 of 2024 before the Court. The Single Judge dismissed the writ petition, however, with a direction to the 2nd respondent to consider and pass appropriate orders in the stay petition within four months. The Single Judge, however, did not grant a stay of recovery proceedings.
Sri. Harisankar V. Menon counsel for the appellant and Smt. Susie B. Varghese counsel for the Income Tax Department.
A division bench comprising Dr Justice A K Jayasankaran Nambiar & Dr Justice Kauser Edappagath viewed that since the Single Judge had relegated the appellant to the alternative remedy before the statutory authority, it was incumbent upon the Judge to protect the appellant from recovery proceedings pending disposal of the petitions by the respondent appellate authority.
The court modified the impugned judgment of the Single Judge to the limited extent of clarifying that pending disposal of the stay petitions or appeals whichever is earlier by the appellate authority, the recovery proceedings against the appellant for recovery of the amounts confirmed against it by the order shall be kept in abeyance.
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