Pending Income Tax Appeal before ITAT on Income Tax Recovery: Kerala HC directs to file Stay Application [Read Order]

Top Stories Pending Income Tax Appeal before ITAT on Income Tax Recovery: Kerala HC directs to file Stay Application [Read Order] The Kerala high court directed to file a stay application against income tax recovery By Yogitha S. Yogesh – On December 11, 2023 3:00 pm – 2 mins read The Kerala High Court directed the petitioner to file a stay application as the Income-tax appeal is Pending before the Income Tax Appellate Tribunal (ITAT) on Income Tax Recovery Puliyammakkal Mathai Sebastian and Punathil Nishriya, the appellants are aggrieved by the identical orders passed by the 1st respondent to remit 20% of the demand as a condition for treating them as persons not in default. The appellants are assessed under the Income Tax Act, 1961 (the IT Act).

Aggrieved by the assessment order, the appellants preferred statutory appeals before the Commissioner of Income Tax (Appeals). The appellants also moved an application under section 220(6) of the IT Act before the 1st respondent.

The 1st respondent asked the appellants to remit 20% of the demand as a condition for treating them as persons not in default. The appellants filed writ petitions challenging the said condition imposed. After hearing both sides, the Single Judge dismissed the writ petitions.

Sri.S. Ananthakrishnan appeared for the appellants and Sri. Christopher Abraham appeared for the income tax department. It was found that the appeals preferred by the appellants against the assessment orders are pending before the Appellate Authority/the Commissioner of Income Tax (Appeals). The appellants can very well move stay applications before the Appellate Authority. It appeared that the appellants have moved no such stay applications.

The Single Judge has granted one week to the appellants to file the stay applications. While dismissing the petition, the division bench of Dr Justice A K Jayasankaran Nambiar & Dr Justice Kauser Edappagath held that “if the appellants prefer stay applications before the Commissioner of Income Tax (Appeals) within one week from today, he shall consider and dispose of either the stay applications or the appeals itself within three weeks after the receipt of the stay applications after hearing both sides.”

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