Authority: High Court at Calcutta (Constitutional Writ Jurisdiction)
Order Date: 7 August 2026
Case Overview
- Petitioners: Starlight Ispat Private Limited and others; Respondents: Union of India and others, including the Income Tax Authority and Union of India.
- The Assessing Officer issued an assessment under Sec 147/144B of the Income Tax Act on 13 March 2026, raising a demand of Rs 8,43,54,073 for Assessment Year 2018‑19 and initiated penalty proceedings under Sec 274/207A(9).
- Petitioners applied for a stay of the demand on 10 April 2026; the Assessing Officer rejected the stay on 16 April 2026, citing the assessed income being nine times the declared income and tax liability sixteen times the declared liability.
- Petitioners filed 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 the petitioner should have approached the Principal Commissioner for review before approaching the writ court.
Final Outcome
- The court quashed and set aside the Assessing Officer’s order dated 16 April 2026.
- The pending appeal before the Commissioner of Income Tax (Appeals) must be disposed of by a reasoned order within two months, without unnecessary adjournments, and the decision communicated within a week thereafter.
- Until the appeal attains finality, the respondent authorities are restrained from taking any coercive steps against the petitioner.
- The Commissioner of Income Tax shall take an independent decision, not influenced by observations in this order.
Topics: Tax Demand, Income Tax Appeal, Judicial Relief