Stay on recovery of tax demands for loss making company denied; limited conditional relief tied to pending rectification reducing liability. Application sought an unconditional stay on tax recovery where the appellant is a loss-making company; court found no strong prima facie case warranting ...
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Stay on recovery of tax demands for loss making company denied; limited conditional relief tied to pending rectification reducing liability.
Application sought an unconditional stay on tax recovery where the appellant is a loss-making company; court found no strong prima facie case warranting unconditional relief and declined to interfere. The usual requirement of deposit of the full demand remains the default; a limited departure was permitted because a rectification application could reduce liability to Rs. 68.91 crores, but this did not justify an unconditional stay. Challenges based on alleged distortion of profit and loss treatment, high pitched assessment and administrative circulars were rejected as insufficient to displace the deposit rule.
The Supreme Court, through Hon'ble Justices Abhay S. Oka and Ujjal Bhuyan, dismissed the Special Leave Petitions filed by the petitioner. The Court held that "No case for interference is made out in exercise of our jurisdiction under Article 136 of the Constitution of India." Consequently, the petitions were dismissed and all pending applications disposed of.
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