Pendency of Condonation Application: Kerala HC grants Interim Stay on Income Tax Recovery Proceedings [Read Order]

In a recent ruling, the Kerala High Court passed an interim order staying the recovery proceedings of income tax during the pendency of Condonation application.

The petitioner’s counsel composed of Aditya Unnikrishnan, Priyadarsini .S, Anil D Nair and Binisha BS challenged the assessment order issued by Income Tax Central Circle, Kochi. The petitioner is an assessee under the Income Tax Act, whose assessment for the year 2022-2023 was completed by the respondent.

Aggrieved by the assessment order, the petitioner approached the 2nd respondent (Assistant Commissioner of Income tax Central Circle1, Kochi) where there was a delay of 11 days in preferring the appeal. Owing to which the petitioner filed a petition condoning the delay in filing the appeal. The petitioner also preferred a stay application on recovery of income tax and interest on assessment order. The respondents were represented by Susie B Vargese.

The grievance of the petitioner was that the Income Tax department instigated steps for recovery of tax and interest while his appeal was still pending.Therefore the petitioner prayed to the High Court of Kerala that the second respondent be directed to expeditiously dispose of the petition for condonation of delay and consider the stay petition.

The Single Bench of Justice Murali Purushothaman observed the petitioner's appeal and upheld the petitioner's plea against the assessment order and ordered the disposal of condonation for the delay and if the delay is condoned consider the stay expeditiously within one month of the date of judgment. The recovery proceedings shall be stayed till then.

Consequently the writ petition was disposed of requisitioning the disposal of application for condonation of delay and consider stay application.

To Read the full text of the Order CLICK HERE

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates