South Coast Spices Exports Pvt. Ltd. Vs PCIT (Kerala High Court)
Kerala High Court has temporarily halted coercive recovery actions against South Coast Spices Exports Pvt. Ltd. in a recent ruling. The company had filed petitions challenging assessment orders for the assessment years 2015-16, 2018-19, 2020-21, and 2021-22 issued under the Income Tax Act.
The spice exporter has already filed appeals against these orders, along with stay petitions, which are currently pending before the appellate authority, the 3rd respondent in this case. The High Court, acknowledging the pending appeals and stay requests, directed the appellate authority to consider and pass appropriate orders on the stay petitions (Exts.P9 to P12) within three months. This decision must be made after providing the petitioner an opportunity of being heard.
Additionally, the Court noted that there might be a delay in the company’s appeal filings. Therefore, before addressing the stay petitions, the appellate authority is mandated to first determine whether the delay should be condoned, again after hearing the petitioner. Crucially, the High Court ordered that all coercive proceedings, including the demand notice (Ext.P13) stemming from the assessment orders, shall remain in abeyance until a decision is made on the stay petitions. This interim relief aims to provide the company with protection from immediate recovery measures while its appeals are under review.
