Income Tax Recovery Stayed Automatically with 20% Pre-Deposit for Appeal: Madras HC

Ranjit V Srivatsaa Vs ITO (Madras High Court) Madras High Court has issued a significant directive concerning income tax recovery, affirming that such proceedings are automatically stayed once an assessee deposits 20% of the disputed tax amount while filing an appeal. The ruling, delivered in the case of Ranjit V Srivatsaa Vs. Income Tax Officer (ITO), led to the quashing of a recovery notice that had been issued despite the petitioner’s adherence to the pre-deposit requirement. The legal challenge originated from a recovery notice dated December 16, 2024, which the petitioner, Ranjit V ...