In a major relief for electronics giant Samsung India, the Delhi High Court on Monday (December 2) decided to set aside the Delhi Income Tax Appellate Tribunal (ITAT) order not staying the demand of ? 1,213 crore. The ITAT on November 22 refused to stay the demand against Samsung India raised by the income tax department.
Samsung India had filed an application with ITAT seeking a stay of the tax demand of ?1,213 crore, which was dismissed by ITAT on the grounds that the application was premature since no coercive action for recovery had been initiated by the assessing officers. High Court on Monday held that given the fact that demand is outstanding, the Tribunal's reasoning that the application is premature is not sustainable.
With this, now the Delhi High Court has restored that stay application filed by Samsung India before the ITAT with directions to expeditiously decide the said application on merits. The High Court order was pronounced by Justice Vibhu Bakhru and Justice Swarna Kanta Sharma, an order copy of which is awaited.
The tribunal had argued that Samsung had not demonstrated any immediate recovery actions initiated by tax authorities at the time of filing or hearing the application. Citing the absence of an imminent threat, the ITAT dismissed the company’s request. This prompted Samsung to escalate the matter to the Delhi High Court, which ruled in its favour, setting aside the tribunal’s decision.
Commenting on the development, Amit Maheshwari, Tax Partner, AKM Global, a tax and consulting firm said, “The Delhi High Court has allowed the writ petition filed by Samsung India against ITAT order wherein ITAT had dismissed the stay petition of Samsung India being premature as no coercive action was yet initiated by the tax department.
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