Income Tax Demand On OYO For 1,140 Cr: Delhi High Court Directs CIT To Give Personal Hearing

The Delhi High Court has directed the Commissioner of Income Tax (CIT) to accord a personal hearing to OYO for the stay on the income tax demand of Rs. 1,140 crores.

The division bench of Justice Rajiv Shakdher and Justice Tara Vitasta Ganju has observed that the CIT has not dealt with its application, which was preferred before him, in respect of the order passed by the Assessing Officer (AO) under Section 220(6) of the Income Tax Act, 1961.

The petitioner, OYO, has challenged the order denying the stay on the recovery of the complete tax demand. The petitioner asked the department not to treat the OYO as an assessee in default under Section 220(6) of the Income-tax Act, 1961, for the entire outstanding demand of Rs. 11,39,93,05,320 until the Commissioner of Income-tax (Appeals) decided the appeal.

The court directed the CIT to dispose of the application at the earliest possible time, though not later than four weeks. The CIT will accord a personal hearing to the authorized representative of the petitioner and also allow the filing of written submissions.

"In case an order is passed by the CIT that is adverse to the interests of the petitioner, the order of the CIT will not be given effect for a period of two weeks from the date when the order is received by the petitioner," the court said.

Case Title: OYO Hotels And Homes Pvt. Ltd. Versus DCIT

Citation: 2023 LiveLaw (Del) 188

Date: 17.02.2023

Counsel For Petitioner: Ajay Vohra, Manuj Sabharwal, Abhishek Anand, Nakul Sehgal

Counsel For Respondent: Puneet Rai, Ashvini Kumar

Click Here To Read The Order