Bharat Electronics Limited Vs DCIT (Karnataka High Court)
The Karnataka High Court partly allowed the petition challenging the jurisdictional AO’s order dated 19.06.2026 and PCIT’s order dated 17.07.2026 concerning stay of a tax demand. The AO had marked 90% of the demand of ₹1,52,04,95,690 as stayed and 10%, amounting to ₹15,20,49,569, as collectible, subject to deposit. The PCIT upheld the terms and permitted payment of the 10% amount in two instalments.
The Court observed that neither the AO nor the PCIT had given reasons for requiring 10% of the demand to remain collectible. It held that where authorities are required to decide based on parameters under the relevant circulars, they must provide reasons.
The Court therefore quashed the PCIT’s order dated 17.07.2026 and restored the petitioner’s application for reconsideration under Clause (C) of the Office Memorandum dated 29.02.2016. The PCIT was directed to hear the petitioner and decide the application within seven days by a reasoned order. The petition was allowed in part.
FULL TEXT OF THE JUDGMENT/ORDER OF KARNATAKA HIGH COURT
The petitioner, a public sector undertaking, is aggrieved by these two orders: faJ the jurisdictional Assessing Officer’s Order dated 19.06.2026 [Annexure – B] and fbJ the order by the Principal Commissioner of Income-tax, Bengaluru-1 dated 17.07.2026 [Annexure – A]. The jurisdictional Assessing Officer has disposed of the petitioner’s application for stay stipulating that 90% of the amount in demand [Rs.1,36,84,46,121/-] is marked as stayed and the balance 10% [Rs.15,20,49,569/-] is marked as collectible.
