Income Tax Recovery Proceedings cannot initiate during Pendency of Appeals before CIT(A): Gujarat HC

The Gujarat High Court ruled that income tax recovery proceedings cannot be initiated during the pendency of appeals before the Commissioner of Income Tax (Appeals) (CIT(A)). The court emphasized that if the tax department is not interested in resolving the issue of pending appeals, no recovery should be made from the assessees during this period. This decision came in response to a petition challenging the recovery proceedings initiated by the tax authorities despite the pending appeals. The court highlighted that such actions violate the principles of natural justice and the statutory provisions under the Income Tax Act. The ruling provides significant relief to taxpayers, ensuring that recovery actions are stayed until the appeals are resolved. This judgment reinforces the need for fair and just procedures in tax recovery processes, protecting the rights of taxpayers during the appeal period.