Here's a breakdown of the court's decision on a tax dispute involving the Vasavi Group. The court had to decide whether the group should pay a huge tax demand or get more time to appeal.
The case was overseen by Chief Justice Sri Aparesh Kumar Singh and Justice G.M. Mohiuddin. Lawyers Mr. K.Aswatth Janaardhan and Mr. Pranav Munigela represented the Vasavi Group, while Mr. K.V. Rama Rao and Mr. S. Janardhan Goud were among those representing the Principal Commissioner of Income Tax (PCIT).
The Principal Commissioner of Income Tax (PCIT) in Hyderabad issued a tax demand of Rs. 428,98,50,568 against the Vasavi Group. This massive amount was based on various assessment years.
"The absolute stay was granted on the conditions that the assessee will cooperate during the appeal proceedings without seeking adjournment."
Initially, the Vasavi Group got a pause on this demand, meaning they didn't have to pay immediately. However, this pause was conditional. They had to cooperate fully during the appeal process, or the pause would be lifted.
Unfortunately, the Vasavi Group missed several appeal dates due to personal reasons. This led to the PCIT canceling the pause on October 21, 2025, and issuing a demand notice on October 23, 2025.
In response to the demand notice, the Vasavi Group filed multiple requests to the court. They wanted the court to stop the tax recovery until their appeals were heard.
The court decided that the Vasavi Group should participate diligently in the appeal process. They were given until November 14, 2025, to apply for a recall of the demand notices.
"Till such decision is taken by the PCIT (central), the respondents would not proceed to recover the amount indicated in the impugned notices from the petitioners."
The court ruled that if the Vasavi Group files the necessary application, the PCIT must make a new decision within two weeks. During this time, no recovery action can be taken against them. However, if they miss this deadline, the tax authorities can proceed with the recovery.
The court has given the Vasavi Group another opportunity to appeal the tax demand, provided they meet the new deadlines set by the court. If they fail to do so, the tax authorities are allowed to continue with the recovery process.
