Recovery Proceedings under Income Tax Act on Pending of Appeal: Kerala HC directs to Decide Appeal within 6 Months [Read Order]

The Kerala High Court stayed the Recovery Proceedings under Income Tax Act, 1961 initiated even on pending of appeal and directed to decide the appeal within 6 months.

Thiruvilwamala Service Co Operative Bank Limited, the petitioner sought for the issue a writ of mandamus or other appropriate writ, order or issue a writ of mandamus or other appropriate writ, order or direction to the first and second respondents to consider appeal submitted by the petitioner against assessment order on merit taking note of the dictum laid down by the Supreme Court in Mavilayi Service Co-operative Bank Ltd. and others v. Commissioner of Income Tax and another and also the dictum laid down in Principal Commissioner of Income Tax v. Peroorkada Service Co-operative Bank and fresh orders in the matter.

Further prayed to issue any appropriate writ, order or direction, restraining the respondents from taking coercive proceedings against the petitioner, pursuance to order till the disposal of the appeal filed by the petitioner before the appellate authority.

The petitioner has filed appeal against assessment order dated 12.12.2017  before the second respondent in the year 2018.  However, the said appeal is now pending before the second respondent.  The counsel for the petitioner submitted that  since the appeal has not been decided by the second respondent, the petitioner is facing recovery proceedings in pursuance to assessment order.  Sri. Joseph John, the Standing Counsel, submitted that appeal shall be taken up for consideration expeditiously. 

Considering the said submission, Justice Dinesh Kumar Singh disposed of the present writ petition with a direction to respondent Nos. 1 and 2 to take up the appeal for consideration at an early date and decide the same expeditiously, preferably within a period of six months. Further held that the recovery proceedings against the petitioner pursuant to assessment order shall stand stayed.

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