Gurusannidi Vs ITO (Kerala High Court)
When Hearing Is Over but Order Isn’t – Kerala HC Stays Tax Recovery Pending NFAC Verdict – Two Hearings, Still No Order- NFAC Directed to Expedite Disposal- Kerala HC Stays Recovery Pending Appeal
The petitioner, a society registered under the Societies Registration Act & assessed under the Income Tax Act, filed a writ petition seeking protection from recovery proceedings initiated by the Department while its appeal against the assessment order dated 21.03.2023 (AY 2018–19) was still pending before the CIT(A)/NFAC.
The petitioner submitted that the appeal had already been heard twice-on 30.05.2024 & 11.07.2025—& that written submissions were duly filed. Despite the hearing being concluded, the Department issued a recovery notice u/s 221(1) on 29.09.2025, prompting the writ petition.
After hearing both parties, Justice Ziyad Rahman observed that since the appeal hearing was substantially completed, it would be improper to pursue recovery before the appellate authority renders its decision. Accordingly, the Court directed the CIT(A)/NFAC to dispose of the pending appeal expeditiously, & until then, the recovery proceedings shall remain stayed.
FULL TEXT OF THE JUDGMENT/ORDER OF KERALA HIGH COURT
The petitioner is an assessee under the Income Tax Act and being aggrieved by Ext.P2 assessment order, an appeal has been submitted, which is now pending before the 3rd respondent. It is pointed out that the appeal is already heard on two occasions, i.e., on 30.05.2024 and 11.07.2025. However, now the petitioner is aggrieved by the recovery proceedings that are being pursued, pending consideration of the said appeal, as evidenced by Ext.P9.
