LI Network
Published on: January 19, 2024 at 12:00 IST
The Supreme Court overturned the orders of the Rajasthan High Court, restoring the appeals of the assessee by condoning the delay in filing the paper-book. The apex court emphasized that the taxpayer is entitled to a hearing on the merits of the case.
The Division Bench, comprising Justice P.S. Narasimha and Justice Aravind Kumar, noted that the High Court had dismissed Appeal No. 817 of 2008 for noncompliance, and consequently, it decided to dismiss Appeal No. 816 of 2008 without examining the matter on merits.
The Supreme Court, however, expressed the view that the appellant has the right to have the appeals heard on their merits.
The background of the case involves the assessment year 2001-02, where the Assessing Officer (AO) issued an assessment order disallowing interest. Both the Commissioner of Income Tax (Appeals) and the Income Tax Appellate Tribunal (ITAT) upheld this decision.
Subsequently, the High Court directed the assessee to file the paper-book within 15 days, warning that failure to do so would result in the dismissal of the appeal without reference to the Court.
As the paper-book was not filed within the stipulated time, the Registrar dismissed the appeal. The High Court further rejected the application for the restoration of the appeal, and the review against this decision was also dismissed.
The Supreme Court bench observed that the appeal for the assessment year 2001-02 was dismissed due to the non-filing of the paper-book within the prescribed time.
The High Court, considering the dismissal for the previous year, deemed it inappropriate to pass inconsistent orders for the assessment year 2002-03 and decided to dismiss the appeal without examining the matter on its merits.
In light of these circumstances, the Supreme Court remarked that the High Court could have condoned the delay in filing the paper-books for the assessment year 2001-02 if considered alongside the assessment year 2002-03.
Consequently, the apex court allowed the taxpayer’s appeal and directed the High Court to hear both appeals together, providing an opportunity for proper adjudication and determination on the merits.
Case Title: Herbicides India Limited vs. ACIT