Kerala HC Stays Coercive Recovery on Protective Tax Assessment, Citing SC Precedent

Lolika Chandrababu Vs ACIT (Kerala High Court) Kochi: In a significant ruling for taxpayers facing parallel tax proceedings, the Kerala High Court has stayed coercive recovery action initiated based on a protective assessment order. The court, relying on precedents from the Supreme Court and its own Division Bench, held that recovery proceedings cannot be enforced on an assessment made as a protective measure while a substantive assessment on the same income is pending elsewhere. The case involved Ms. Lolika Chandrababu, a partner in the firm ‘M/s. Sreedhanya Construction Company’....