No coercive steps for recovery of disputed tax amount as the Tribunal were non functional

Income Tax Department prevented to take coercive steps for recovery of disputed tax amount as the Tribunal at Allahabad and Varanasi were non functional

ABCAUS Case Law Citation:
ABCAUS 2622 (2018) (11) HC

Several appeals of the petitioner(s) for the various assessment years were pending before the Income Tax Appellate Tribunal (ITAT), Allahabad. During the pendency of these appeals, the Income Tax Department initiated recovery proceedings against the petitioners to recover the disputed amount of tax. 

Aggrieved by the action of the Department, the Petitioners approached the Hon’ble High Court by filing a Writ Petition.

The submission of the Petitioners was that the Income Tax Appellate Tribunal, Allahabad was non functional and as such they were unable to get the appeals decided or to obtain any interim order therein. 

The Income Tax Department accepted that the Tribunal at Allahabad and Varanasi are not functioning but submitted that if there was any urgency, petitioner may move application before the Income Tax Appellate Tribunal, Lucknow for the transfer of appeals and get them heard or move applications for grant of interim protection therein.

The Hon’ble High Court, in view of the facts and circumstances that the appeals of the petitioners were pending and not being considered for the non functioning of ITATs, permitted the petitioner(s) to make appropriate applications before the ITAT Lucknow for transfer of appeal so that the same may be heard expeditiously, or some other place having jurisdiction as may be directed.

The Hon’ble High Court stated that the petitioners are also at liberty to move applications for interim protection in the appeals and it the Tribunal, where the appeals are transferred shall consider the same on priority or the appeals if possible within a period of six weeks. 
Accordingly, the Hon’ble High Court directed that for a period of six weeks or till the consideration of the stay application of the petitioner in the appeals or the appeals on merit, whichever is earlier, the Income Tax Department shall not take any coercive steps for the realization of disputed amount of tax.

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