Stay Application against Income Tax Order Demanding Tax: Kerala HC directs to Stay Recovery Proceedings until Final Disposal of Order [Read order]

The Kerala High Court directed the Income-tax authority to keep recovery proceedings in abeyance till the disposal of the stay petition against the Income Tax Assessment Order.

R Jaikrishna, Narayani Harikrishnan , C S Arun Shankar and Anish P appeared for the petitioner. Smt Reshmita Ramachandran appeared for the respondent.

The petitioner, M/S P Kandankutty and Sons Sea Queen Hotel suffered by the order of assessment under the provisions of Income Tax Act, 1961, against which he had preferred an appeal along with stay petition  and an application for condonation of delay. The only prayer of the petitioner is to defer any recovery pursuant to assessment order till a decision is taken on appeal and stay applications by the 2nd respondent.

Justice Gopinath P disposed of the writ petition directing the 2nd respondent to consider and pass orders on stay petition and  application for condonation of delay filed in appeal after affording an opportunity of hearing to the petitioner within one month from the date of receipt of a certified copy of the judgment.

It was held that “Till such time as orders are passed on Exts.P3 and P4 any recovery pursuant to Ext.P1 order of assessment shall remain suspended.”

To Read the full text of the Order CLICK HERE

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