The Kerala High Court has intervened to halt recovery proceedings initiated against Artisans Development Cooperative Ltd ( ARTCO Ltd ), a Kerala-based cooperative, and directed the concerned authorities to consider the company’s stay application within two months.
The decision came in response to a writ petition filed by ARTCO Ltd challenging an assessment order issued by the Income Tax department.
The issue dates back to an assessment order, issued against the Petitioner, ARTCO Ltd by the income tax department. Dissatisfied with this order, ARTCO Ltd promptly appealed to the Commissioner of Income Tax (Appeals). Concurrently, the petitioner also filed a stay application seeking relief from immediate enforcement of the assessment order.
However, faced with delays in the adjudication of their stay application, the petitioner approached the Kerala High Court seeking redress.
The petitioner, represented by K.P. Pradeep, T.T. Biju, T. Thasmi, and M.J. Anoopa highlighted the need for a swift and fair consideration of their stay application to prevent undue financial hardship and ensure procedural justice. The appellant made a compelling case for urgency, stressing the potential adverse consequences of delayed action on their financial stability.
The Kerala High Court not only acknowledged the merits of the petitioner’s plea but also stressed the importance of expediency in legal proceedings.
The single bench of Dr. Justice Kauser Edappagath directed the Commissioner of Income Tax (Appeals) to expeditiously consider and dispose of the petitioner’s stay application within a strict timeframe of two months from the date of receipt of the court’s judgment.
The bench also ordered a temporary halt to the recovery proceedings initiated against the petitioner, thereby alleviating the immediate financial burden on the petitioner pending the resolution of their appeal.
The court highlighted the importance of timely resolution of stay applications, acknowledging its role as a guardian of constitutional rights.
In conclusion, the Kerala High Court halts recovery proceedings against the petitioner and directed the respondent revenue to expedite the consideration of the stay application.
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