2024 (1) TMI 499 - SCH - Income Tax

Stay of all the recovery proceedings - HELD THAT - We are not inclined to interfere with the order passed by the High Court except for the following modifications. The amount of Rs. 2,956 Crores comprising of Rs 1,500 Crores offered by way of cash and Rs. 1,456 Crores towards Fixed Deposit Receipts (FDRs) can be encashed by the Union. We also record the undertaking of the learned ASG, who on instructions submitted that amount will be refunded within four weeks along with interest accrued in the event petitioner s appeals are allowed by the High Court. The requirement of security with respect to the penalty is dispensed with. In view of the high stakes involved in the matter, we request the High Court to take up the appeal and dispose it of same as expeditiously as possible, preferably within a period of six weeks from today.

Summary

Issues involved:
The issues involved in the judgment are modification of the High Court order regarding encashment of a specific amount, refund of the amount with interest if petitioner's appeals are allowed, dispensation of security for penalty, and a request to the High Court for expeditious disposal of the appeal.

Modification of High Court Order:
The Supreme Court declined to interfere with the High Court's order but made modifications regarding the encashment of Rs. 2,956 Crores, consisting of cash and Fixed Deposit Receipts (FDRs). The Union is permitted to encash this amount, with an undertaking for refund within four weeks along with accrued interest if the petitioner's appeals are successful. The necessity for security related to the penalty was waived off.

Expedited Disposal Request:
Due to the significant nature of the matter, the Supreme Court urged the High Court to promptly hear and dispose of the appeal within six weeks from the current date. The Special Leave Petition was disposed of, and any pending applications were also resolved.