Delay of 433 days in filing Income tax Appeal: Kerala HC directs Income Tax Commissioner to Decide Condonation Application

 

P R Combines Vs ACIT (Kerala High Court) (WP(C) No. 28145 of 2023)

Facts:

1. The petitioner had filed statutory appeals against the assessment orders with a delay of 433 days. However, the delay had not been condoned, and the appeals had not been admitted for further proceedings.

2. During the pendency of the appeals and the applications for delay condonation, the income tax authorities issued the recovery cum garnishee orders to recover the assessed tax amount.

3. The petitioner’s counsel submitted that the petitioner was willing to deposit 20% of the assessed tax amount, with the condition that the recovery cum garnishee orders would not be enforced until the final outcome of the appeals.

Hon Kerala HC held as under:

1. The petitioner was directed to deposit 20% of the assessed tax amount within one month from the date of the court’s order.

2. The appellate authority (Commissioner of Income Tax Appeals) was instructed to proceed with the applications for condoning the delay and the appeals expeditiously and to decide them in accordance with the law.

3. The recovery cum garnishee orders and the recovery cum garnishee orders challenged in the writ petition were to be kept in abeyance until the disposal of the applications and appeals.

4. If the petitioner failed to make the deposit of 20% of the assessed tax amount within the stipulated time, the income tax department would be free to enforce the recovery cum garnishee orders.

5. Further no opinion has been expressed on the merits of the matter.