EKK Infrastructure Limited Vs CIT (Kerala High Court)
Once Hearing Concluded, Recovery Must Pause Till Appellate Orders Issued – Revenue Must Wait – Kerala HC Stays Recovery
The petitioner, EKK Infrastructure Ltd., challenged the initiation of recovery proceedings while its income-tax appeals for AYs 2017–18 & 2023–24 were still pending before the CIT(A)-3, Kochi. The company had already filed appeals against the respective assessment orders dated 30.03.2025 The appellate hearings were concluded on 04.06.2025, & the petitioner was awaiting final orders when the Department issued a recovery notice dated 17.10.2025.
After hearing both parties, the High Court observed that since the appellate hearings were already completed & orders were awaited, proceeding with recovery would be premature & unfair. Justice Ziyad Rahman directed the CIT(A) to dispose of the pending appeals within two months & ordered that no coercive recovery proceedings shall continue until the disposal of those appeals.
Held
CIT(A) directed to decide pending appeals within two months; recovery proceedings to remain stayed in the meantime.
FULL TEXT OF THE JUDGMENT/ORDER OF KERALA HIGH COURT
The petitioner, an assessee under the Income Tax Act, being aggrieved by Exts.P1 and P2 assessment orders, submitted Exts.P3 and P4 appeals. It is pointed out that the hearing of appeals is already conducted on 04.06.2025 and the orders are awaited. Now the recovery proceedings are initiated against the petitioner as evidenced by Ext.P9 and this writ petition is submitted in such circumstances.
