Mohamed Haneefa Onathu Kattil Vs ITO (Kerala High Court)
Kerala High Court has temporarily halted recovery proceedings against taxpayers for one month, allowing them time to transfer their income tax appeals to the Income Tax Appellate Tribunal. The petitioners, aggrieved by assessment orders issued under Section 144C read with Section 147 of the Income Tax Act, had initially filed appeals with the appellate authority.
However, it was later identified that, given the assessment orders stemmed from the recommendations of a Disputes Resolution Panel, the correct appellate forum was the Tribunal, as stipulated under Section 253(1)(d) of the Income Tax Act. Recognizing this, the petitioners have now filed their appeals before the Tribunal. The High Court’s interim order grants the petitioners a “breathing time” to obtain necessary interim orders from the Tribunal. This decision provides a brief respite for the taxpayers to regularize their appeals with the appropriate judicial body.
FULL TEXT OF THE JUDGMENT/ORDER OF KERALA HIGH COURT
These writ petitions were filed by the respective petitioners, being aggrieved by the assessment orders under the provisions of the Income Tax Act which are produced as Ext.P1. As against the same, they have already submitted appeals before the 2nd respondent appellate authority and as the recovery proceedings were being pursued against them, pending appeals, these writ petitions were filed. However, it was pointed out that, as Ext.P1 assessment orders were passed under Section 144C read with Section 147 of the Income Tax Act, on the basis of recommendation of Disputes Resolution Panel, the appeal ought to have been filed before the Tribunal as contemplated under Section 253(1)(d) of the Income Tax Act. Since the petitioner realized the above fact, the appeals have been filed before the Tribunal.
