Supreme Court questions Delhi HC order on sending Congress back to ITAT

The Income-Tax (I-T) department on Tuesday informed the Supreme Court that it has recovered outstanding taxes from the Congress. The I-T department had issued a demand notice to the Congress for recovery of nearly ₹105 crore as outstanding taxes.

The development took place during the resumed hearing of a plea filed by Congress against a Delhi High Court order refusing to interfere with the order of Income Tax Appellate Tribunal (ITAT).

However, the HC had permitted Congress to move a fresh application for stay before ITAT. The SC today questioned the rationale behind the high court sending the Congress back to ITAT and not exercising its own (HC) jurisdiction.


"Why did the HC ask them (Congress) to go back to ITAT when Congress came in on appeal? How can it fail to exercise its jurisdiction?" a division bench comprising Justices BV Nagarathna and N Kotiswar Singh verbally remarked.

The counsel for the I-T department informed the bench that the issue was only academic since the recovery had already been made by the department. The bench was apprised that the Congress was asked to go back to the ITAT afresh for a stay.

On the other hand, counsels for the Congress argued that the HC should have granted an interim stay. Taking stock of the contentions, the Supreme Court issued notice on Congress' plea. However, it clarified that ITAT can proceed with the party's appeal.