DY.COMMR.OF INCOME TAX vs STATE BANK OF INDIA & ORS.

The Supreme Court addressed the appeals against the Special Court's order under the Special Court (Trial of Offences Relating to Transactions in Securities) Act, 1992, which directed the appellant to deposit Rs. 546.22 crores with interest. The Court held that the Special Court improperly scaled down the priority tax demand by reviewing the merits of assessment orders, which contravened the precedent set in Harshad S. Mehta v. Custodian & Ors. [(1998) 5 SCC 1]. The Court emphasized that the Special Court's actions were beyond its jurisdiction, thereby upholding the Income Tax Department's position regarding tax assessments for the relevant assessment years.