28 Apr 2026
Deal: Trilegal successfully represented Samsung India in High Court challenge against INR 1213.50 crore tax demand
05 Dec 2024
05 Dec 2024
Trilegal successfully represented Samsung India Electronics Private Limited (Samsung India) before the High Court of Delhi in writ petition against the order of Income-tax Appellate Tribunal, Delhi summarily dismissing Samsung India’s stay application seeking stay of outstanding demand of INR 1213.50 Crores on the ground that the application is premature because no coercive action for recovery has been initiated by the Revenue.
High Court sets aside the order of ITAT, Delhi dated 22.11.2024 and held that given the fact that the demand is outstanding, ITAT’s reasoning that the application is premature is not sustainable.
High Court has restored the Stay application to the file of the ITAT with a direction to decide the application on merits and on an expedited basis.
High Court has settled the law that once the demand has been raised as outstanding pursuant to the demand notice, a stay application cannot be considered as premature on the basis that no coercive or precipitative steps have been taken by the Revenue.
This is a landmark decision addressing a specific problem being faced by many taxpayers where stay applications are being regularly dismissed or delayed merely on the ground that coercive action or recovery proceedings have not been initiated by the Revenue. High Court holds this approach to be unsustainable mandating it for the ITAT to examine merits in the stay applications.
This ruling alleviates the risk of sudden coercive action such as bank account attachments, which the Revenue often pursues after giving very short notices leaving no time for taxpayers to approach Tribunals or Courts for relief. High Court has set a precedent for a proactive approach to stay applications, reducing unnecessary procedural hurdles and reinforcing taxpayer protection.
The Taxation Team advising on the matter was led by our Partner Himanshu Shekhar Sinha and supported by our Counsel Prashant Meharchandani; Associates Vibhu Jain and Jainender Singh Kataria.
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About Trilegal
Trilegal is one of India’s leading law firms, with expertise across the full spectrum of corporate legal services. Trilegal has offices in four key cities of India.
Trilegal has been recognised as the India Deal Firm of the Year by Asian Legal Business (ALB) India Law Awards 2023; one of the ‘Best Overall Law Firms’ at the India Business Law Journal Indian Law Firm Awards 2022; ‘Firm of the year’ for Client Service Excellence by Asia Law Awards 2021; “M&A Law firm of the Year” by VCCircle Awards 2020 one of the most innovative law firms in Asia in the inaugural edition of ALB Trailblazers 2020; and ‘highly commended’ in the FT RSG Innovative Lawyers Awards 2020.
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Anoop Siddak Singh Tuli
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