The Kerala High Court has directed a stay on recovery proceedings against the assessee under the Income Tax Act, 1961, until the authorities consider and pass orders on the stay petition, filed alongside a statutory appeal, within a period of two months.
Jolly Saji, the petitioner, received an assessment order from the Income Tax Department for the assessment year 2019-2020 dated March 12, 2024.
Aggrieved by the assessment, the petitioner filed an appeal before the Commissioner of Income Tax ( Appeals). Along with the appeal, the petitioner also filed a stay petition, requesting a pause on any recovery actions until the appeal is decided.
Despite the stay petition, the authority issued a communication, directing the petitioner to pay 20% of the amount demanded in the assessment order. The relief sought by the petitioner is that the recovery proceedings may not be initiated while the statutory appeal and stay petition are pending.
Justice Murali Purushothaman disposed of the petition, directing the respondent to consider and pass orders on the stay petition expeditiously. The respondent was directed to decide on the stay petition within two months from the date of receipt of the copy of judgement.
Until then, no recovery proceedings shall be initiated against the petitioner pursuant to the assessment order and the notice.
Dinesh. R. Shenoy, Silesh. S. Prabhu, Jomol Pius, and Helan Paulose appeared for the petitioner.
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