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        Case ID :

        2024 (4) TMI 502 - SCH - Income Tax

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        Supreme Court Grants Stay on HC Findings, Halts Coercive Actions Over Rs. 3,500 Crore Dispute Until July 2024 Hearing. The SC granted a stay on the HC's findings in Civil Appeal Nos. 64-65/2018, pending further adjudication. The respondent-Department, acknowledging demands ...
                      Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                        Provisions expressly mentioned in the judgment/order text.

                            Supreme Court Grants Stay on HC Findings, Halts Coercive Actions Over Rs. 3,500 Crore Dispute Until July 2024 Hearing.

                            The SC granted a stay on the HC's findings in Civil Appeal Nos. 64-65/2018, pending further adjudication. The respondent-Department, acknowledging demands of approximately Rs.3,500 crores, agreed not to take coercive measures until the next hearing in July 2024 due to impending elections, providing temporary relief to the appellant(s).




                            Issues involved:
                            The application for stay of findings arrived at by the High Court, pending adjudication of Civil Appeal Nos. 64-65/2018 u/s special leave petitions preferred by the appellant(s). The respondent-Department's decision not to take coercive steps regarding demands totaling approximately Rs.3,500 crores made in March 2024 due to impending elections.

                            Issue 1: Application for Stay of Findings by High Court

                            The application was filed in Civil Appeal Nos. 64-65/2018, pending adjudication before the Supreme Court after leave was granted in the special leave petitions by the appellant(s). The application challenged the findings of the Delhi High Court, particularly referencing paragraph 124 of the impugned order. The appellant sought an urgent hearing due to demands made in March 2024, but the matter was listed as per the notified date. The Solicitor General confirmed demands totaling Rs.3,500 crores were made in March 2024 against the appellant(s), but assured no coercive steps would be taken by the respondent-Department until the next hearing in the second week of July 2024. The appellant(s) were relieved from apprehension of coercive action until the next hearing date.

                            Issue 2: Decision of Respondent-Department Regarding Coercive Steps

                            The respondent-Department, through the Solicitor General, acknowledged the demands made in March 2024 amounting to approximately Rs.3,500 crores against the appellant(s). Despite the pending appeals and unresolved issues, the respondent-Department opted not to take any coercive measures due to the upcoming elections. The Solicitor General proposed a hearing date in the second week of July 2024, ensuring no coercive action would be pursued until then. The total demand of Rs.3,500 crores was noted to encompass various issues beyond the scope of the current appeals. The appellant(s) were granted relief from any coercive action until the specified hearing date.

                            This judgment highlights the application for stay of findings by the High Court in the context of pending appeals before the Supreme Court, along with the respondent-Department's decision not to take coercive steps regarding substantial demands made against the appellant(s) in March 2024. The Solicitor General's assurance of no coercive action until the next hearing date provided temporary relief to the appellant(s) amidst the ongoing legal proceedings.
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                            ActsIncome Tax
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