Authority: High Court at Calcutta (Constitutional Writ Jurisdiction)
Order Date: 7 August 2026
Case Overview
- Petitioners: Starlight Ispat Private Limited and another, represented by counsel Rishi Raju, Shreya Mundhra, Adrish Dutta.
- Respondents: Union of India and other authorities, including Income Tax Authority and Union of India.
- Assessing Officer issued assessment under Sec.147 read with Sec.144B on 13 March 2026, raising demand of Rs 20,64,35,615 for Assessment Year 2023‑24 and initiated penalty proceedings under Sec.274 read with 207A(9).
- Petitioners applied for stay of demand on 10 April 2026; AO rejected stay on 16 April 2026, citing income and tax liability multiples.
- Petitioners filed writ petition (WPO/256/2026) and an appeal before the Commissioner of Income Tax (Appeals) on 10 April 2026, which remains pending.
- Respondent authorities relied on CBDT circulars dated 31 July 2017 and 29 February 2016, arguing that review should be sought before the Principal Commissioner.
- Court noted prima facie case, referenced earlier judgment WPO 770/2024 directing disposal of appeal within six weeks, and considered the circulars.
Final Outcome
- The AO's order dated 16 April 2026 rejecting the stay is quashed and set aside.
- The pending appeal before the Commissioner of Income Tax (Appeals) must be disposed of by a reasoned order within two months from the date of this order, with opportunity of hearing and no unnecessary adjournments.
- The decision of the Commissioner must be communicated within a week thereafter.
- Until the appeal attains finality, respondent authorities are restrained from taking any coercive steps against the petitioner.
- The Commissioner of Income Tax shall take an independent decision without being influenced by observations in this order.
Topics: Tax Litigation, Income Tax, Court Order