Read The division bench of the Kerala High Court has stayed the recovery proceedings under the Income Tax Act, 1961 till the disposal of statutory appeal.
Atma Bodhodaya Sangham Sree Subhananda Trust , the appellant had challenged the order before the Court in the writ petition when confronted with recovery steps for recovery of the amounts confirmed against it by the order.
It was the case of the appellant that the order, it has preferred appeal along with stay petition for the assessment year 2022-23 under the Income Tax Act before the 4th respondent, the Appellate Authority. In the meantime, coercive steps were taken for realisation of the demands.
The Single Judge found that the Principal Commissioner (Exemption) is the competent authority to condone the delay, but the application has been filed before the Principal Commissioner, the 2nd respondent.
The Single Judge disposed of the writ petition with liberty to the appellant to file a fresh application before the Principal Commissioner of Income Tax (Exemption) within a period of ten days and if such an application is filed, the Principal Commissioner of Income Tax (Exemption) was directed to consider the same and pass orders in accordance with law. The 4th respondent was also directed to consider the application for stay filed by the appellant against the intimation under Section 143(1) expeditiously.
The Single Judge, however, did not grant stay of recovery proceedings pending disposal of the stay petition by the respondents. It is for this limited relief; the appellant is before us through the present appeal.
Sri. Harisankar V. Menon, the counsel for the appellant and Sri. Jose Joseph, the Standing counsel for the Income Tax Department.
Since the Single Judge had relegated the appellant to the alternative remedy before the statutory authority, it was incumbent upon the Judge to protect the appellant from recovery proceedings pending disposal of the petitions by the respondent appellate authority.
A division bench of the Dr Justice A K Jayasankaran Nambiar & Dr Justice Kauser Edappagath modified the order to the limited extent of clarifying that pending disposal of the stay petition or appeal, whichever is earlier by the appellate authority, the recovery proceedings against the appellant for recovery of the amounts confirmed against it by order shall be kept in abeyance.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
