Shalina Laboratories Private Limited Vs PCIT (Bombay High Court)
The writ petition before the Bombay High Court concerned the rejection of a stay application filed by the assessee for Assessment Year 2023–24 and the consequent initiation of recovery proceedings. The petitioner challenged an order dated 28 November 2025 passed by the Principal Commissioner of Income Tax rejecting its stay application, as well as a subsequent notice dated 10 December 2025 issued under Section 226(3) of the Income-tax Act, 1961.
The petitioner contended that it had filed a detailed stay application on 21 August 2025 seeking protection from recovery during the pendency of appellate proceedings. According to the petitioner, this application was rejected mechanically, without consideration of the submissions made, and without recording any reasons. The petitioner therefore sought quashing of the rejection order and the recovery notice, and prayed for a remand for fresh consideration of the stay application.
The Court heard submissions from counsel for both sides. It examined the impugned order dated 28 November 2025, which recorded that a hearing had taken place, the authorised representative had made submissions on merits, referred to a petition before the High Pitch Committee, and pleaded financial hardship. The order further noted that the assessee was asked whether it was willing to pay any part of the demand upfront, to which the response was in the negative. The order concluded with a single line stating that the matter was heard and the stay application was rejected.
