Om Vision Infraspace Private Limited Vs ITO (Gujarat High Court)
In a significant ruling, the Gujarat High Court has determined that income tax recovery proceedings cannot be initiated while appeals are pending before the Commissioner of Income Tax (Appeals) [CIT(A)]. This decision addresses ongoing concerns regarding the backlog of appeals, which have led to prolonged delays and significant distress for many taxpayers.
The ruling stems from a case involving Om Vision Infraspace Private Limited, which, along with other petitioners, raised concerns about the delays in the disposal of their appeals before the CIT(A). During the hearings, advocates representing the petitioners highlighted that some appeals had been pending for over four years without resolution. The petitioners argued that despite the backlog, the Income Tax Department had initiated recovery proceedings, leading to unnecessary stress and hardship for taxpayers.
The court session began with the appearance of learned advocates for the petitioners, including Ms. Vaibhavi K. Parikh, Mr. Ashutosh S. Dave, and Mr. Dhinal A. Shah. They were joined by Senior Standing Counsel Mr. Karan Sanghani, who represented the Income Tax Department. During the hearing, it was noted that the petitioners were protected from any coercive actions by the Income Tax Department through previous court orders.
