Supreme Court issues notice to PayPal in IT department's plea against stay on ₹32 crore demand

The Supreme Court has issued a notice to PayPal in response to the Income Tax Department’s plea challenging a stay on a ₹32 crore demand. The Bombay High Court had previously stayed the final assessment order against PayPal for allegedly underreporting its income for the assessment year 2020-21. The Supreme Court’s notice seeks to address the IT Department’s concerns and determine the validity of the stay order. PayPal contends that the assessment order was issued beyond the legally permissible period, making it arbitrary and illegal. The IT Department argues that the timelines under Section 144C of the Income Tax Act override other provisions, justifying their actions. The case is now expected to come up for hearing on December 10, with the Supreme Court aiming to resolve the legal questions surrounding the assessment and the stay order.