Income Tax Recovery During Pendency of ITAT Appeal Stayed: Gauhati HC Orders tribunal to Take up Interim Pleas Expeditiously [Read Order]

In a recent ruling, the Gauhati High Court has granted interim relief to a Samitee, staying income tax recovery proceedings during the pendency of appeals before the Income Tax Appellate Tribunal (ITAT) and directing the Tribunal to take up interim applications expeditiously.

The writ petition was filed by the assessee-society named Adarsh Samaj Kalyan Samitee challenging Income tax assessment orders for AYs 2021-22 and 2022-23, along with recovery actions initiated by the Income Tax Department.

The petitioners sought second appeals before the ITAT after the appellate body dismissed the first appeals. However, the Department started recovery procedures, including freezing the petitioners' bank accounts, while these appeals were still pending, which led the society to seek the High Court.

During the hearing, the petitioners contended that the ITAT was not functioning regularly, making it difficult to obtain urgent interim relief against coercive recovery.

On the other hand, the Income Tax Department submitted that the ITAT was functional, though stay applications were being taken up only on specific days, and assured the Court that the Tribunal would consider the matter if directed.

Therefore, the bench of Justice Soumitra Saikia observed that since the statutory appellate forum is available and operational, the appropriate course would be to ensure expeditious consideration of the assessee’s appeals and interim pleas by the ITAT.

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