Clerical error in tax audit reporting justified stay on recovery and prompt disposal of the pending appeal.

Where an assessee demonstrates a plausible clerical or typographical error in Form 3CD through a tax auditor's certificate and revised figures, coercive recovery of tax demand may be stayed while the statutory appeal remains pending, because the corrected figures require examination by the appellate authority and recovery could prejudice the assessee. The Court also directed expeditious disposal of the appeal, preferably within three months, so the dispute over the corrected audit reporting can be decided on merits without prolonged uncertainty.

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Issues: (i) whether coercive steps for recovery of the tax demand arising from the assessment and demand notices should be stayed pending the assessee's appeal in view of the alleged clerical error in Form 3CD and the corrected figures; (ii) whether a direction for expeditious disposal of the pending tax appeal was warranted.

Issue (i): whether coercive steps for recovery of the tax demand arising from the assessment and demand notices should be stayed pending the assessee's appeal in view of the alleged clerical error in Form 3CD and the corrected figures.

Analysis: The assessee placed on record a tax auditor's certificate and the revised Form 3CD showing that the figures originally uploaded contained a technical or typographical error. The appeal against the assessment order was already pending. In the peculiar facts, the dispute regarding the corrected figures required consideration in appeal, and recovery during pendency could prejudice the assessee.

Conclusion: Coercive recovery steps were stayed during the pendency of the appeal, in favour of the petitioner.

Issue (ii): whether a direction for expeditious disposal of the pending tax appeal was warranted.

Analysis: Since the core dispute turned on corrected audit figures already placed before the appellate authority, early adjudication was necessary to avoid prolonged uncertainty and to enable the appellate forum to examine the controversy on merits.

Conclusion: The appellate authority was directed to decide the appeal expeditiously, preferably within three months, in favour of the petitioner.

Final Conclusion: The writ petition was allowed and interim protection against recovery was granted while requiring speedy disposal of the assessee's pending appeal.

Ratio Decidendi: Where an assessee shows a plausible clerical or typographical error in audit reporting and the statutory appeal is pending, the Court may protect the assessee against coercive recovery pending appellate adjudication and may direct expeditious disposal of the appeal.

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