Ponnani Royal Sky Gold LLP Vs ITO (Kerala High Court)
Timely Appeal but No Stay Upload Link – HC Steps In to Ensure Natural Justice- Kerala HC Allows Assessee to File Stay Petition Online Despite Portal Limitations- Technical Glitch No Bar: HC Protects Right to Seek Stay in NFAC Appeals
Petitioner, M/s Ponnani Royal Sky Gold LLP, challenged the coercive steps initiated pursuant to assessment order dated 27.06.2025) & demand notice, pending disposal of its appeal dated 25.07.2025. The grievance was that no separate facility existed for uploading a stay petition along with the appeal, thereby depriving the petitioner of an opportunity to seek stay of recovery.
Revenue contended that the stay petition could still be uploaded via the communication link available for the CIT, & that the petitioner could have availed that route.
The Court observed that since the appeal had been filed within time but stay petition could not be uploaded due to technical limitations, the assessee should not be denied remedy. It directed that the petitioner be permitted to upload the stay petition either through the CIT communication link or other available modes within two weeks. The concerned authority was mandated to ensure facility is provided.
The Court further directed that once the stay petition is filed, the authority must pass a reasoned order within three months after granting hearing. Till then, recovery proceedings were ordered to be kept in abeyance.
