Advaidh Nelakanttan Ramakrishnan Vs ITO (Madras High Court)
Madras High Court granted an interim stay on recovery proceedings initiated pursuant to the reassessment order dated 22.09.2025 passed u/s 147 r/w 144 & 144B for AY 2021-22.
The Petitioner sought to quash the reassessment order issued by the Income Tax Department, contending that the reopening was invalid.
The Court directed that all recovery proceedings shall remain stayed pending further orders. Significantly, the matter has been adjourned sine die (without a fixed date) to await the Supreme Court’s decision in Hexaware Technologies Ltd vs ACIT [2024] 162 taxmann.com 225 (Bombay), which concerns similar legal issues regarding reassessment validity under the new regime.
The Registry was also directed to tag this petition along with W.P.No.34684 of 2025 batch, where analogous reassessment matters are pending.
This order reflects the continuing trend among High Courts to defer adjudication in reassessment disputes until the Supreme Court settles the law in Hexaware Technologies Ltd, which is expected to have a wide-ranging impact on reopening proceedings initiated post-2021 amendments.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
Mrs. S.Premalatha, learned Senior Standing Counsel takes notice for the Respondents.
2. There shall be an order of interim stay of all recovery proceedings pursuant to the impugned Order dated 22.09.2025.
