Delay in deciding Stay application against Income Tax Assessment Order: Kerala HC directs NFAC to decide within 2 Months [Read Order]

The Kerala High Court directed the National Faceless Assessment Centre (NFAC) to decide within 2 months due to a delay in deciding to stay the application against the Income Tax assessment order. \r

The Centre for Management Development appealed a Single Judge's judgment, arguing that the Single Judge directed the appellant to remit 20% of the assessed amounts pending the stay applications' disposal. Counsel Sherry Samuel Oommen highlighted the need for consideration of delay condonation applications for filing returns under Section 119. \r

The division bench modified the judgment, holding that recovery of assessed amounts should be suspended until the First Appellate Authority decides on the stay applications. The court found the Single Judge's direction unsustainable, as the appellant made a prima facie case warranting protection from recovery pending the authority's decision on the applications.