Court orders 2nd respondent to decide on stay petition within 3 months, defers recovery emphasizing timely resolution.

The court directed the 2nd respondent to consider and pass orders on the stay petition filed with the appeal within three months. Recovery was deferred until the appeal and stay petition were disposed of, emphasizing the need for timely resolution and expeditious decision-making by tax authorities to address the delay in disposal of the petitioner's appeal and stay petition under the Income Tax Act, 1961.

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Issues: Delay in disposal of appeal and stay petition under the Income Tax Act, 1961.

In this case, the petitioner, an assessee under the Income Tax Act, 1961, filed a writ petition seeking a mandamus to the 2nd respondent Commissioner of Income Tax (Appeals)-II, Kochi, to expedite the disposal of Ext.P2 appeal and Ext.P3 stay petition. The assessment for the year 2012-13 was completed by the 1st respondent Assistant Commissioner under Section 143(3), read with Section 92CA, by Ext.P1 order of assessment. The petitioner then filed Ext.P2 appeal and Ext.P3 stay petition before the 2nd respondent. Subsequently, the 1st respondent rectified the order and passed Ext.P4 order under Section 154, modifying the tax demand. Despite this, the petitioner's appeal and stay petition remained pending before the 2nd respondent, leading to the petitioner's grievance.

The court heard both parties and directed the 2nd respondent to consider and pass appropriate orders on the stay petition filed along with the appeal, within a period of three months from the date of receipt of the judgment. The court also ordered that any recovery pursuant to the original assessment order, as modified by the subsequent order, would be deferred until the disposal of the appeal and stay petition. The judgment aimed to ensure a timely resolution of the pending matters under the Income Tax Act, emphasizing the need for expeditious consideration and decision-making by the tax authorities to address the petitioner's concerns regarding the delay in the disposal of their appeal and stay petition.

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