In a recent hearing, the Supreme Court questioned the jurisdiction of the Delhi High Court in directing Congress to return to the Income Tax Appellate Tribunal (ITAT) despite the party’s appeal to the Supreme Court. The bench, led by Justice BV Nagarathna, inquired why Congress was being directed back to the ITAT when the matter is already under Supreme Court review.
The Court emphasized that the pendency of Congress’s appeal before the Supreme Court should not impede the ITAT’s ability to proceed with its decision. It also noted that Congress is required to cooperate with the ITAT proceedings.
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Congress has challenged a Delhi High Court order in the Supreme Court, which had previously denied the party’s request to stay a notice issued by the Income Tax Department for the recovery of Rs 105 crore. During the last hearing, the Income Tax Department had assured the Court that no immediate action would be taken. Solicitor General Tushar Mehta stated that while the petition initially focused on a specific demand, the Department would refrain from pursuing recovery actions amounting to Rs 1700 crore or more at this time.
Senior advocate Abhishek Manu Singhvi, representing Congress, acknowledged the Department’s concession as unusually accommodating, which he described as rare.
The dispute intensified with the Income Tax Department issuing a new notice to Congress just before the Lok Sabha elections, demanding Rs 1745 crore for the assessment years 2014-15 to 2016-17.
