Deciding two connected writ petitions arising from a common Industrial Tribunal Award, the Delhi High Court set aside the Tribunal's direction granting hotel workmen a further…
Labour Laws
06/09/20264 min read
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Appeal does not automatically stay tax recovery: Madras HC affirms CBDT’s 20% deposit rule
Appeal Against OrderIncome Tax
The Madras High Court ruled that filing an appeal under the Income-tax Act does not automatically stay recovery proceedings. The Court upheld CBDT’s requirement that taxpayers must deposit 20% of disputed tax before obtaining stay. It clarified that such pre-deposit ensures revenue protection while the appeal is pending. The decision reinforces disciplined appellate practice and limits misuse of automatic stay claims by assessees.
