Facts of the Case

  • The petitioner company challenged a tax assessment order resulting in a high tax demand.
  • An interim stay order dated 28.02.2018 had earlier been granted subject to conditions.
  • The petitioner complied by depositing ₹10 crore as per directions.
  • The appeal against the assessment order was pending before the CIT(A).
  • The petitioner approached the High Court seeking continuation of stay till disposal of the appeal.

Issues Involved

  1. Whether the interim stay on recovery of tax demand should continue till disposal of the appeal before CIT(A).
  2. Whether the High Court should intervene in a matter already pending before the appellate authority.

Petitioner’s Arguments

  • The petitioner had complied with the earlier condition by depositing ₹10 crore.
  • The matter was already pending before CIT(A), and coercive recovery would cause prejudice.
  • Requested continuation of stay till final disposal of appeal.

Respondent’s Arguments

  • The Revenue stated that it did not wish to file a counter-affidavit.
  • Without prejudice to its rights, it agreed that the interim stay may be continued till disposal of the appeal.

Court’s Findings / Order

  • The Court disposed of the writ petitions without commenting on merits of the assessment order.
  • The Court recorded consent of both parties regarding continuation of stay.
  • It directed that:
    • The stay shall continue till disposal of appeal before CIT(A).
    • The appeal should be disposed of expeditiously, considering the heavy tax demand.
  • Parties were permitted to bring this order to the notice of CIT(A).

Important Clarifications by the Court

  • The High Court did not adjudicate on merits of the assessment order.
  • The continuation of stay is purely interim and linked to pendency of appeal.
  • The order emphasizes expeditious disposal by CIT(A) in high-demand tax matters.

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

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