The Kerala High Court directed the respondent to keep recovery proceedings under the Income Tax Act, 1961 still the disposal of stay application or appeal
Kunnappilly Builders L L P, the appellant filed an appeal and application for a stay of recovery pending disposal of the appeal against the assessment order under the Income Tax Act. When recovery steps were initiated by the respondents during the pendency of the statutory appeal and stay application, the appellant approached the writ court, which was disposed of by a Single Judge by relegating the appellant to the alternate remedy of appeal and directing the Appellate Authority to dispose of the stay application or the appeal within two months.
The appellant impugned the said judgment of the Single Judge solely on the ground that while disposing of the Writ Petition, the Single Judge did not grant a stay of recovery proceedings till the First Appellate Authority considered the stay application/appeal as directed by the Single Judge.
Sri. Anil D. Nair, the counsel appeared for the appellant and Sri. Jose Joseph, the Standing counsel appeared for the Income Tax Department.
Since the Single Judge had relegated the appellant to the alternate remedy before the statutory authority it was incumbent upon the Judge to protect the appellant from recovery proceedings pending disposal of the application by the respondent appellate authority.
A division bench of Dr Justice A K Jayasankaran Nambiar & Dr Justice Kauser Edappagath modified the impugned judgment of the Single Judge to the limited extent of clarifying that pending disposal of the stay application or appeal whichever is earlier, by the appellate authority, the recovery proceedings against the appellant for recovery of the amounts confirmed against him by assessment order shall be kept in abeyance.
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