Recovery during pending tax appeals restrained where appellate delay and existing protection against coercive action were noted.

Recovery of outstanding tax dues was restrained while the petitioners' appeals remained pending before the appellate authority, because the Court noted prolonged appellate delay, a substantial backlog, and no effective time-bound disposal mechanism. The continued recovery steps were therefore considered inappropriate in light of the existing protection already operating against coercive action. The operative effect was that the department could not pursue recovery during the pendency of the petitions.

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Issues: Whether recovery of outstanding tax dues could be continued while the petitioners' appeals remained pending before the appellate authority.

Analysis: The petitions arose from prolonged pendency of appeals before the Commissioner of Income Tax (Appeals) and the continued recovery steps taken by the department. The Court noted the large backlog of pending appeals and the absence of any effective time-bound mechanism shown for disposal of the appeals. In these circumstances, and in view of the existing protection already operating against coercive action, the Court considered it inappropriate to permit recovery to proceed during the pendency of the petitions.

Conclusion: Recovery of outstanding dues from the petitioners was restrained during the pendency of the petitions.

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