Case Law Details
Director Of Income Tax Vs Western Union Financial Services Inc (Supreme Court of India)
Introduction: The Supreme Court of India has ruled on a case involving the Income Tax Department and Western Union Financial Services Inc. The court addressed the issue of dismissing tax appeals due to inordinate delays in refiling them. It also directed the Income Tax Department to pay costs to Western Union and ordered a re-adjudication of the appeals.
Analysis: The appeals before the Delhi High Court were dismissed based on the appellant’s inordinate delay in refiling them (ranging from 991 to 1117 days). The appellant, the Income Tax Department, sought condonation of the delay, but the High Court rejected the explanation and did not consider the appeals on their merits.
The appellant approached the Supreme Court, arguing that the substantial questions of law raised by the Department were not considered due to the delay, causing prejudice to the Revenue. The Supreme Court acknowledged that the delay was considerable but found that the High Court should have considered the cases on their merits and condoned the delay, especially if the substantial questions of law were significant.
As a result, the Supreme Court set aside the High Court’s orders, allowed the appeals, and restored them before the High Court. It directed the Income Tax Department to pay a cost of Rs. 50,000 to Western Union in each appeal. The payment of the cost is a prerequisite for the High Court to consider the appeals on their merits.
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