Eldhose K George Vs ITO (Kerala High Court)
Kerala HC Stays Recovery Pending Decision on Delay & Stay Petitions – NFAC Directed to Act Within Time-Bound Frame
The petitioner, an assessee under the Income Tax Act, filed an appeal before the CIT(A)/NFAC challenging the intimation issued under section 143(1) for A.Y. 2024–25. Along with the appeal, he filed a delay condonation petition & a stay petition seeking to keep recovery in abeyance during the pendency of the appeal.
However, recovery proceedings were initiated by the Department even before the condonation & stay petitions were decided. Aggrieved, the petitioner approached the High Court seeking a direction to the authorities to first dispose of the pending applications.
Court held that the Revenue should act fairly & cannot pursue coercive recovery while the assessee’s delay condonation & stay petitions are pending. Accordingly, the Court directed the NFAC to first decide the delay condonation petition within two months, & if condoned, to then decide the stay petition within one month thereafter. Until such decisions are made, recovery proceedings shall remain in abeyance.
Held
NFAC directed to decide the delay condonation & stay petitions in a time-bound manner; recovery stayed until such orders are passed.
