Jayaprakash Kanakkankottil Vs ITO (Kerala High Court)
Kerala HC Stays Recovery Pending Decision on Delay & Stay Petitions – Revenue Directed to Act Fairly Before Coercive Steps
The Petitioner, an assessee under the Income Tax Act, filed an appeal before the CIT(A)/NFAC against the assessment order dated 26.03.2025 for A.Y. 2020–21. Along with the appeal, he filed a delay condonation petition supported by medical certificates & a stay petition ( seeking to keep the recovery proceedings in abeyance pending disposal of the appeal. However, the Department initiated recovery proceedings even before deciding the delay condonation & stay petitions. Aggrieved by this coercive action, the Petitioner approached the High Court.
Issue
Whether recovery proceedings can be continued when the appeal, delay condonation petition, & stay petition are still pending before the appellate authority.
Court’s Observations
The Court noted that the Petitioner had already filed both the appeal & stay petition, along with a request to condone the delay. The authorities, however, had not taken any action on those applications & had proceeded with recovery. Justice Ziyad Rahman observed that such coercive steps before adjudication of the delay & stay petitions would cause grave prejudice to the taxpayer, defeating the right of appeal. The Court emphasized that the Revenue must act fairly & first dispose of procedural applications before enforcing recovery.
