Recently, the Supreme Court questions the Delhi High Court's directive for the Congress party to seek a stay on an Income Tax demand notice from the Income Tax Appellate Tribunal (ITAT). This demand involves recovery of over Rs 100 crore in outstanding dues.

The Supreme Court Bench, consisting of Justice BV Nagarathna and Justice N Kotiswar Singh, issued a notice in response to Congress's challenge against the High Court's March 13 order. Despite this, the Bench affirmed that the ITAT may proceed with the Congress party’s appeal.

The Court questioned the High Court’s decision, stating, "How can the High Court instruct the petitioner (Congress) to return to the ITAT when the appeal was already against the tribunal's decision? The High Court was incorrect in not exercising its jurisdiction."

N Venkataraman, Additional Solicitor General for the Income Tax department, informed the Court that the recovery of the outstanding amount had already been completed, making the matter largely academic.

Senior Advocate Vivek Tankha, representing Congress, argued that the High Court should have exercised its jurisdiction and granted an interim stay on the demand notice.

In response, the Supreme Court Bench issued a notice to the IT department and clarified, "The pendency of this special leave petition will not prevent the ITAT from making a decision on the matter."

On March 13, the Delhi High Court had opted not to interfere with the ITAT’s decision to deny a stay on the Income Tax notice. The High Court had permitted Congress to file a new stay application with the ITAT, highlighting changes such as the recovery of Rs 65.94 crore via bank drafts