The Kerala High Court has directed that recovery proceedings initiated against an assessee under the Income Tax Act be kept in abeyance until the pending appeal is disposed of by the appellate authority.
The bench of Justice Ziyad Rahman A.A. has observed that since the appellate proceedings had already commenced, it would be inappropriate for the authorities to continue with coercive recovery measures at this stage.
The petitioner, Gurusannidi is an assessee under the Income Tax Act, had challenged recovery actions initiated by the Income Tax Department pursuant to an assessment order (referred to as Ext.P2). Aggrieved by the said order, the petitioner had filed a statutory appeal before the third respondent authority.
According to the petitioner, the appeal had already been heard on two occasions—on May 30, 2024, and July 11, 2025. Despite the appeal being under active consideration, the department had proceeded with recovery measures as evidenced by Ext.P9, prompting the assessee to approach the High Court for relief.
“The hearing on the appeal is already commenced, and it is only proper that the recovery proceedings be kept in abeyance till the appeal is disposed of,” the Court held.
Disposing of the writ petition, the Court issued directions to the appellate authority to expeditiously dispose of the pending appeal. Furthermore, the department were restrained from proceeding with recovery actions based on the impugned assessment order until the appeal reaches its conclusion.
Case Details
Case Title: Gurusannidi Versus ITO
Case No.: WP(C) NO.37917 OF 2025
Date: 16/10/2025
Counsel For Petitioner: P.Raghunathan
Counsel For Respondent: P.R.Ajith Kumar
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