2026 Supreme(Online)(Ker) 30414

IN THE HIGH COURT OF KERALA AT ERNAKULAM
Ziyad Rahman A.A., J
Paravur West Co-Operative Bank Ltd – Appellant
Versus
Income Tax Officer – Respondent
WP(C) No. 17505 of 2026

Recovery proceedings during the pendency of stay petitions filed before appellate authorities should be stayed until the adjudication of said stay petitions to prevent potential injustice.

Headnote:The petitioner filed this writ petition challenging the recovery proceedings initiated by the revenue authorities while their appeals and stay petitions regarding assessment orders for the years 2020-21 and 2024-25 were pending. The relevant provisions of the tax legislation provide for an appellate remedy, and the petitioner argued that recovery efforts during the pendency of stay applications cause undue hardship. The court addressed the primary issue of whether coercive recovery measures should be halted while stay applications remain undecided. The court observed that it is appropriate for the appellate and assessment authorities to consider the stay petitions within a reasonable timeframe to ensure the assessee is not prejudiced, and pending such consideration, recovery proceedings should be stayed. The court directed the appellate and assessment authorities to dispose of the stay petitions within a period of two months, ordering that recovery proceedings be kept in abeyance until such decisions are rendered.