Facts of the Case

  • The petitioner challenged a tax assessment order resulting in a substantial demand.
  • An interim stay order dated 28.02.2018 had already been granted.
  • The petitioner deposited ₹10 crores in compliance with the interim directions.
  • The appeal against the assessment order was pending before the CIT(A).
  • The dispute before the High Court was limited to continuation of stay till disposal of appeal.

Issues Involved

  1. Whether the interim stay on tax demand should continue till disposal of appeal before CIT(A)?
  2. Whether the High Court should interfere in the matter while the statutory appeal is pending?
  3. Whether conditions imposed (deposit amount) are sufficient to justify continuation of stay?

Petitioner’s Arguments

  • The petitioner accepted continuation of the interim stay conditions.
  • It highlighted compliance by depositing ₹10 crores.
  • Sought protection from coercive recovery during pendency of appeal.
  • Requested expeditious disposal of appeal considering heavy tax demand.

Respondent’s Arguments

  • The Revenue stated that it did not wish to file a counter-affidavit.
  • Without prejudice, it agreed that the interim stay may be confirmed till disposal of appeal by CIT(A).

Court’s Findings / Order

  • The Delhi High Court disposed of the writ petitions without examining merits of the assessment order.
  • The Court held that:
    • The matter is already pending before CIT(A).
    • The interim stay dated 28.02.2018 shall continue till disposal of appeal.
  • Directed that:
    • Parties may approach CIT(A) with this order.
    • CIT(A) should dispose of the appeal expeditiously, considering the high tax demand.

Important Clarifications

  • The Court did not adjudicate on merits of the assessment.
  • The stay is conditional and operative only till disposal of appeal.
  • Emphasis was placed on speedy disposal of appellate proceedings.
  • The order reinforces judicial restraint where statutory remedies are already invoked.

 Link to download the order -https://delhihighcourt.nic.in/app/case_number_pdf/2018:DHC:9025-DB/SKN08052018CW19072018_141610.pdf

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