Case Law Details
Shameem Thari Vs ITO (Kerala High Court)
Introduction: The Kerala High Court has issued a directive to the National Faceless Appellate Centre (NFAC) to expedite the resolution of income tax appeals and stay applications. This decision was prompted by the petitioner’s concerns over recovery proceedings related to arrears of income tax. The court’s intervention serves as a means to ensure that taxpayers’ appeals are addressed promptly, preventing undue financial burdens.
1. Background: The petitioner, in this case, sought legal recourse under Article 226 of the Constitution of India. The primary objective was to obtain a court order instructing the 2nd respondent, which is the National Faceless Appellate Centre (NFAC), to expedite the resolution of Ext.P2 series appeals and Ext.P3 series stay applications against Ext.P1 series assessment orders.
2. Delay in Proceedings: The petitioner’s contention revolved around the delay in addressing their appeals and stay applications by the relevant authority. While the petitioner had timely approached the Appellate Authority to challenge the assessment orders in the Ext.P1 series, no decisions had been made either on the stay applications or the appeals. This delay led to the initiation of recovery proceedings regarding the tax arrears determined in the Ext.P1 series.
3. Court’s Directive: The Kerala High Court recognized the petitioner’s legitimate concerns. In response, the court issued a directive to the 2nd respondent (NFAC). The directive entailed passing appropriate orders on Ext.P2 series appeals. If, for any reason, the appeals couldn’t be decided promptly, the court emphasized that Ext.P3 series stay applications filed by the petitioner should at least be addressed in accordance with the law, with a strong emphasis on expeditious resolution.
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