Income Tax Authorities cannot Enforce Recovery on Protective Assessment: Kerala HC stays Coercive Proceedings

Kerala High Court ruled that income tax authorities cannot enforce recovery based on a protective assessment and stayed coercive proceedings. The court emphasized that protective assessments are provisional and recovery measures can only be initiated after a final assessment is completed. This decision provides relief to taxpayers facing premature recovery actions. The High Court's order underscores the importance of due process in tax matters and protects assessees from unwarranted financial pressure based on tentative assessments. This ruling clarifies the limitations on tax authorities regarding protective assessments.