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Jan 17, 2026
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Tax disputes: Not all cases are 'tax terrorism', says department
After securing a favourable judgment in the Tiger Global capital gains tax case, the tax department has said that not all tax disputes should be characterised as overreach or “tax terrorism”. Pending tax demands or withheld refunds in such cases should not automatically be viewed as arbitrary or coercive, officials said.
Sources in the Central Board of Direct Taxes (CBDT) said many disputes arise from genuine differences in interpretation, particularly in evolving areas of tax law. “Final certainty emerges only when the highest court settles the issue. Until then, both the taxpayer and the tax administration are bound by due process,” a senior CBDT official said.
According to officials, the department will now revive assessment proceedings for the assessment year 2019–20 in the Tiger Global matter. “The assessing officer will proceed to complete the assessments in line with the Supreme Court’s ruling. The refund claim of around Rs 967.52 crore, which was withheld under Section 241A, will now be addressed as part of the assessment and consequential demand proceedings,” the sources said.
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