2025 (3) TMI 540 - SCH - Income Tax

Grant of stay and for waiver of the condition to deposit 20% of the disputed tax demand - Additions u/s 68 - validity of invocation of Section 148 - HELD THAT - It is open to the petitioners to challenge the assessment order relating to Assessment Year 2022-2023 before the CIT (Appeals) along with an application for grant of stay and for waiver of the condition to deposit 20% of the disputed tax demand in terms of the Office Memoranda Office Memorandum (O.M.) F.No. 404/72/93-ITCC dated 29.02.2016 and O.M. of the even number dated 31.07.2017 issued by the Central Board of Direct Taxes. If any such appeal and application is filed the same shall be considered and disposed of in accordance with law. If the petitioners are aggrieved by any order they may take recourse to appropriate remedies as may be available to them in law. In case the appeal is preferred by the petitioners before the CIT(Appeals) within five days from today the same will not be dismissed on the ground of limitation as the petitioners filed a writ petition before this Court and had approached the High Court also. We also direct that for a period of ten days from today coercive steps for recovery of the impugned tax demand shall not be taken. It is stated that for the assessment year 2021-2022 30% of the impugned tax demand has been recovered by taking recourse to coercive steps. Special Leave Petition shall be treated as disposed of in the above terms.

Summary

The Supreme Court, with Chief Justice Sanjiv Khanna and Justice Sanjay Kumar presiding, granted permission to file a special leave petition without a certified/plain copy of the impugned order. The petitioners are allowed to challenge the assessment order for the Assessment Year 2022-2023 before the Commissioner of Income Tax (Appeals). They may also apply for a stay and waiver of the requirement to deposit 20% of the disputed tax demand, as per the Office Memoranda dated 29.02.2016 and 31.07.2017 issued by the Central Board of Direct Taxes. The Court stipulated that if the appeal is filed within five days, it will not be dismissed due to limitation issues, considering the petitioners' prior legal actions. Additionally, coercive recovery steps for the tax demand are stayed for ten days. The Special Leave Petition is disposed of under these terms, with the respondents given the liberty to seek recall or modification of the order if necessary.