Supreme Court Of India
Union Of India & Anr. vs. A. Sanyasi Rao & Ors.
Section 44AC
S. Ranganathan, V. Ramaswami & Yogeshwar Dayal, JJ.
IA No. 1-105 In CA 4290-4394 of 1989
31st March, 1992
Counsel Appeared
Dr. V. Gaurishankar with S. Rajappa, Ms. A. Subhashini & P. Parameshwaran, for the Petitioner
BY THE COURT :
I. A. Nos. 1-105 : Issue notice to the respondent returnable in eight weeks.
2. Pending further orders, we suspend the operation of the High Court’s judgment under appeal with the result that the Department will be free to complete assessments of the various assessees concerned without being bound by the High Court’s observations regarding the limited operation of that section. S. L. P. (C) Nos. 3944-4087 of 1992 and I. A. No. 1-74 of 1992 in S.L.P. (C) . . . . . of 1992 :
3. It has been mentioned on behalf of the Union of India that these S. L. Ps. have been filed by the Union of India against the judgments of the Orissa and Punjab and Haryana High Courts following the decision of the Andhra Pradesh High Court in A. Sanyasi Rao vs. Government of A.P. (1989) 77 CTR (MP) 40 : (1989) 178 ITR 31, which is the subject-matter of C. A. Nos. 4290-4394 of 1989. These S. L. Ps. have not yet been listed and one batch is also out of time. These S. L. Ps. are taken on board. Issue notice to the respondents returnable in eight weeks.
In the meantime, it is mentioned on behalf of the Union of India that as a result of the High Court judgment, the Department is unable to complete assessments involving the application of s. 44AC and that these assessments are bound to be time-barred today, i.e., 31st March, 1992. It is, therefore, prayed that there should be an interim order of suspension of the operation of the judgment of the High Court.
In the meantime, following our directions in I. A. Nos. 1 to 105 in C. A. Nos. 4290-4394 of 1989, we direct that there shall be a stay of operation of the impugned judgments. The effect of it will be to permit the Department to complete assessments involving cases under s. 44AC irrespective of the observations in the judgments of the High Court of limited applicability of these sections. Copy of the order be given dasti to the counsel for Union of India.
[Citation : 202 ITR 584]
