High Court allows appeals, stays recovery, emphasizes no coercive action.

The High Court allowed the appeals, set aside the writ petition orders, directed the stay of recovery proceedings, and instructed the expeditious disposal of appeals before the Commissioner of Income Tax (Appeals). The Court found sufficient cause to condone the delay in filing the appeals and emphasized that no coercive action should be taken against the appellant for recovery of the assessed tax until the appeals were disposed of.

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Issues: Dismissal of writ petitions on grounds of belated filing, condonation of delay in filing appeals, granting interim stay of assessments, disposal of appeals before Commissioner of Income Tax (Appeals).

Analysis:
1. Dismissal of Writ Petitions: The appeals were filed against orders passed by the Single Bench in W.P.A. No.11284 of 2021, W.P.A. No.11281 of 2021, and W.P.A. No.11272 of 2021 questioning assessment orders under Section 143(3) of the Income Tax Act, 1961. The Single Bench dismissed the writ petitions as belated, as stay applications were filed before the assessing officer in September 2018. The appellant challenged this dismissal before the High Court.

2. Condonation of Delay: There was a delay of 166 days in filing the appeals, which the appellant sought to condone. The High Court found sufficient cause for the delay and thus condoned it, allowing the appeals to be heard on their merits.

3. Granting Interim Stay: The High Court noted that the assessments in question were high-pitched assessments completed in 2017-2018 for the assessment years 2011-12, 2012-13, and 2016-17. The appellant had filed statutory appeals before the Commissioner of Income Tax (Appeals) within the limitation period, and these appeals were pending since 2018. The Court observed that during the pendency of the appeals, giving effect to the assessment orders might cause prejudice. Therefore, it directed that no coercive action be taken against the appellant for recovery of the assessed tax until the appeals were disposed of.

4. Disposal of Appeals: The High Court referenced a similar case where the Court had directed that recovery notices remain stayed until the disposal of appeals, especially in cases of unreasonably high-pitched assessments. In line with this precedent, the High Court allowed the appeals, setting aside the orders of the writ petitions. The Court directed the Commissioner of Income Tax (Appeals) to dispose of the appeals on merits and in accordance with the law within 45 days from the receipt of the judgment and order copy.

5. Final Directions: The High Court clarified that it did not delve into the merits of the matters and left it open for the assessee to present all factual and legal issues before the Commissioner of Income Tax (Appeals). The Court ordered no costs to be paid and instructed that certified copies of the order be provided to the parties promptly upon compliance with legal formalities.

In conclusion, the High Court allowed the appeals, set aside the writ petition orders, directed the stay of recovery proceedings, and instructed the expeditious disposal of appeals before the Commissioner of Income Tax (Appeals).

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