Mumbai, Sept. 18 -- The Supreme Court on Friday stayed an order of the Punjab and Haryana High Court that had struck down a provision of the Income-Tax Act, involving reassessment proceedings.

Hearing the Centre's plea challenging the high court's 10 September judgment, an apex court division bench consisting of Justice JB Pardiwala and Justice K. Vinod Chandran said, "The impugned order shall remain stayed on the condition that assessment as well as reassessment proceedings shall not proceed further till final disposal of the main matter." the court ordered.

The matter will be taken up for final hearing on 3 December.

On Wednesday, additional solicitor general N. Venkataraman had told the court that the high court ruling had created a...