Kerala HC Stays Recovery Proceedings under Section 147, Pending Consideration of Delay Condonation and Stay Petition [Read Order]
The court observed that the assessee must be given an opportunity to present his case.
![Kerala HC Stays Recovery Proceedings under Section 147, Pending Consideration of Delay Condonation and Stay Petition [Read Order]](https://images.taxscan.in/h-upload/2025/07/16/2064375-kerala-highcourt-condonation-of-delay-stay-petition-taxscan.webp "Kerala HC Stays Recovery Proceedings under Section 147, Pending Consideration of Delay Condonation and Stay Petition [Read Order]")
The Kerala High Court has stayed recovery proceedings initiated under Section 147 read with Section 144B of the Income Tax Act, 1961, pending consideration of the petitioner's applications for condonation of delay and stay.
The bench granted relief to the petitioner who challenged an assessment order.
Coming to the facts of the present case, the petitioner, Azhagiyanambi Vallinayagam Pillai, a 64-year-old resident of Thiruvananthapuram, had filed a writ petition against the Income Tax Department’s recovery actions while his appeal and related applications were still pending.
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In this case, an assessment order was passed under Section 147, read with Section 144B of the Income Tax Act. The assessee had already challenged the order by filing an appeal, a petition to condone the delay, and a stay application. His main concern was that the tax department had moved ahead with recovery proceedings even though these matters were still pending.
The High Court, after hearing arguments from both sides, directed the Commissioner of Income Tax (Appeals) to first address the delay condonation petition within two months of receiving the court’s order. The court observed that the assessee must be given an opportunity to present his case. If the delay was condoned, the stay petition would then be considered, with a decision to be made within one additional month.
Until these matters were resolved, the High Court ordered a stay on all recovery proceedings linked to the assessment order. This interim relief provided the assessee with temporary protection from coercive actions by the tax authorities.
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The bench observed that “Accordingly, it is ordered that the 1st respondent shall take up Ext.P7 delay petition first, and the decision shall be taken thereon within a period of 2 months from the date of receipt of a copy of this judgement, after giving the petitioner an opportunity to be heard.”
Justice Ziyad Rahman A.A. disposed of the writ petition.
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