A.D. Electrosteel Co. Pvt. Ltd. Vs Union of India (Calcutta High Court)
The Calcutta High Court considered a writ petition challenging demand notices dated November 18, 2025 and November 25, 2025 issued under Section 156 of the Income Tax Act, 1961, arising from an assessment order dated March 25, 2025 passed under Section 143(3) for Assessment Year 2012–13. The assessment order had earlier been challenged in appeal, but the first appeal was dismissed for non-prosecution on November 3, 2016. A further appeal before the Income Tax Appellate Tribunal was also dismissed for non-prosecution on August 20, 2018. An application seeking restoration of the Tribunal appeal, filed after a delay of 1757 days, was dismissed on April 22, 2024 as it was not pursued.
The petitioners challenged this dismissal before the High Court, which by order dated May 6, 2025 set aside the Tribunal’s order and permitted them to apply afresh for restoration. A fresh application before the Tribunal is pending. Meanwhile, based on the subsisting assessment order, the Revenue issued demand notices. The petitioners contended that they had applied for stay of demand under Section 220(6) and alleged that recovery proceedings were being pursued while the stay application remained undecided.
