Income Tax Demand on Denial of Benefit U/S 80P: Kerala HC Sets Aside Recovery on Pendency of Appeal Before ITAT

The Kerala High Court has set aside the recovery of income tax demand on the denial of benefits under Section 80P, pending an appeal before the Income Tax Appellate Tribunal (ITAT). The court found that the recovery proceedings were initiated prematurely, without considering the pending appeal. This decision emphasizes the importance of allowing due process and the right to appeal before enforcing tax recovery. It highlights the need for tax authorities to exercise caution and fairness when initiating recovery actions, particularly when an appeal is still under consideration.