The Kerala High Court has intervened in a case involving the recovery of demand by the Income Tax Department, emphasising the importance of a fair and expedited appeals process.
The case revolves around the petitioner, Benny John, hailing from Kottayam against whom the Income Tax Department had initiated proceedings concerning the assessment year 2015-2016 leading to the issuance of an assessment order.
Dissatisfied with the order, the petitioner filed an appeal before the Commissioner of Income Tax (Appeals). Additionally, Benny John submitted a stay petition seeking reprieve from immediate enforcement actions.
However, despite these pending appeals, the petitioner faced the imminent threat of recovery proceedings as per the demand notice. This prompted the petitioner to approach the Kerala High Court seeking relief from the relentless pursuit of recovery amidst unresolved appeals.
The petitioner was represented by C.A. Jojo while the respondent revenue the Commissioner of Income Tax (Appeals) and others were represented by Sri. Jose Joseph.
The petitioner contested the initiation of recovery proceedings by the Income Tax Department amidst pending appeals. He sought relief from immediate enforcement actions until the resolution of his appeal and stay petition, emphasising the need for a fair and expedited appeals process.
The respondent revenue argued for the enforcement of recovery proceedings based on the demand notice. They highlighted the necessity of prompt action to recover the confirmed amount against the petitioner, citing procedural obligations and the need to safeguard revenue interests.
The single bench of Dr. Justice Kauser Edappagath of the Kerala High Court orders a stay on the recovery proceedings until the resolution of the appeal and stay petition filed by the petitioner. The Commissioner of Income Tax (Appeals), was instructed to expedite the review of the stay petition and deliver a verdict within two months from the date of the judgment.
The court stressed the importance of ensuring a fair and efficient appeal process, providing relief to taxpayers who find themselves caught in the complex web of tax assessments and legal proceedings.
The judgment highlighted the principles of natural justice and due process, emphasising the need for timely resolution of appeals to prevent undue hardship and injustice to taxpayers.
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