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Case lawHigh Court › Vedanta Holdings Mauritius II Ltd v CIT (International Taxation)-3 — an Approving Panel order under GAAR stayed by the Delhi High Court, with the Revenue filing its own writ against the same order
High CourtHelps taxpayerValidity unconfirmeds.144BAs.144BA(4)s.144BA(6)s.144BA(10)s.144BA(13)s.144BA(14)s.95s.96s.153

Vedanta Holdings Mauritius II Ltd v CIT (International Taxation)-3 — an Approving Panel order under GAAR stayed by the Delhi High Court, with the Revenue filing its own writ against the same order

The Approving Panel has issued its order and s.144BA(14) says no appeal lies. Will a High Court actually stay a Panel order, and does the same bar stop the department from challenging a Panel order it dislikes?

The Approving Panel has issued its order and s.144BA(14) says no appeal lies. Will a High Court actually stay a Panel order, and does the same bar stop the department from challenging a Panel order it dislikes?

It will entertain the writ, and on this occasion it stayed the Panel's order — but by consent, not on a contested application. On 17 December 2025 the Delhi High Court issued notice in two writ petitions directed against a single order of the Approving Panel dated 28 November 2025 under the General Anti Avoidance Rule, by which the reference made by the Commissioner of Income Tax (International Taxation)-3, New Delhi under s.144BA(4) dated 26 May 2025 had been upheld; and it directed that "In the meantime, by concurrence of ld. Counsels, the impugned order and the consequent assessment proceedings shall remain stayed till the next date of hearing" — the stay was therefore made on the concurrence of counsel on both sides, and the order is not authority that a contested stay would be granted. The striking feature is who filed the second petition: W.P.(C) 19105/2025 was filed by the Assistant Commissioner of Income Tax, International Tax Circle 3(1)(1), Delhi against the same Panel order. Because s.144BA(14) binds "the Principal Commissioner or Commissioner and the income-tax authorities subordinate to him" as well as the assessee, and bars any appeal under the Act, the department is in the same position as the taxpayer: if it wants to impugn a Panel direction it must also go by writ.

Decided by the High Court (Prathiba M. Singh J and Renu Bhatnagar J (order of 17 December 2025); Prathiba M. Singh J and Shail Jain J (order of 4 December 2025)) on 2025-12-17, reported as W.P.(C) 18483/2025 with CM APPLs. 76643/2025 and 76644/2025, and W.P.(C) 19105/2025 with CM APPL. 79506/2025, High Court of Delhi at New Delhi; later orders in the same matters dated 27 April 2026 and 28 July 2026, by when W.P.(C) 3102/2026 had been added; no law-report citation traced. It bears on section 144BA, section 144BA(4), section 144BA(6), section 144BA(10), section 144BA(13), section 144BA(14), section 95, section 96, section 153 of the Income Tax Act 1961, in Assessment & Scrutiny, Appeals and How Tax Law Is Read matters.

Validity check could not be completed. Validity check could not be completed, and the vocabulary does not carry the position: these are interim orders in petitions that remain pending. The Delhi High Court recorded on 27 April 2026 that interim orders were to continue till further orders, and on 28 July 2026 listed the three connected petitions for 30 September 2026, which is after the date on which this entry was written. Nothing has been decided on the merits, and this entry should be used only for the procedural propositions it actually establishes — that a writ lies against an Approving Panel order, that such an order and the consequent assessment can be stayed, and that the Revenue too must proceed by writ. I did not check whether any of these orders has been carried further.

Why it matters

This is the clearest illustration available of how the s.144BA(14) bar works in practice. The Panel's direction is not a departmental order that the assessee alone must swallow; it binds the Commissioner and every authority under him, and it is unappealable by either side. The consequence for the taxpayer is that the Panel hearing is the last forum in which the facts can be fought, because a writ court will not retry them. The consequence for the department is that a Panel order that goes against it produces a departmental writ petition rather than an appeal, which is exactly what happened here — and a taxpayer facing a favourable Panel direction should expect it. Two further practical points. The Delhi High Court stayed not only the Panel's order but the consequent assessment proceedings, which is the relief to ask for, because staying the direction alone leaves the Assessing Officer free to frame an assessment under s.144BA(10). And the stay does not consume the Panel's own time: the Explanation to s.144BA excludes from the six-month period in s.144BA(13) any period during which the Panel's proceeding is stayed by an order or injunction of any court. Note finally the sequence, which is a lesson in itself: the reference was made on 26 May 2025, the Panel's order came on 28 November 2025, and the petition was filed and heard within days of it.

Binding within that High Court's jurisdiction. Persuasive elsewhere.

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