Case Law Details
Park Leather Company And Ors Vs CIT (Calcutta High Court)
Introduction: In the case of “Park Leather Company And Ors Vs CIT” at the Calcutta High Court, the court tackled a situation where the assessee was left in limbo due to the transition to a faceless system within the Income Tax Department. The petitioner had challenged the inaction on the part of the CIT Appellate Authority in handling an appeal.
Analysis: The case’s critical aspects include:
1. Filing of the Appeal: The appeal was originally filed manually but became subject to the new faceless system following the order of the Tribunal.
2. Change to Faceless System: A lack of clarity within the department about who would handle the appeal under the new faceless system led to the petitioner’s confusion and frustration.
3. Unacceptable Stance by Income Tax Authority: The court firmly criticized the department for expecting the petitioner to determine the appellate authority under the new system, calling it harassment.
4. Expectation of Expedient Disposal: While no specific order was given, the judge expected the appeal to be handled promptly.
5. Importance of Adaptation and Clarity: The ruling emphasizes the need for clear communication and administration when implementing new systems, especially when they can significantly affect an individual’s rights.
Conclusion: The Calcutta High Court’s ruling in “Park Leather Company And Ors Vs CIT” serves as a stern reminder to governmental bodies about the care and clarity required when implementing new systems. By openly criticizing the department’s stance, the court signaled that such bureaucratic inaction and lack of responsibility is unacceptable, and that changes within the system must not lead to the harassment or disadvantage of the citizen. It emphasizes the need for prompt adaptation, proper communication, and thorough administration when introducing new legal or procedural mechanisms.
FULL TEXT OF THE JUDGMENT/ORDER OF CALCUTTA HIGH COURT
The Court: Heard learned advocates appearing for the petitioner.
Petitioner has filed this writ petition being aggrieved by the inaction on the part of the respondent CIT Appellate Authority concerned of the Income Tax in disposing the appeal of the petitioner on the order of remand dated 31st December, 2018 by the Income Tax Appellate Tribunal relating to assessment year 2013-14.
A very peculiar stand has been taken by the respondent Income Tax Authority that though the appeal was filed manually but after the passing of the order of the Tribunal remanding the matter before the CIT Appellate Authority concerned faceless system came into effect and the department itself does not know that in such a case who will be the appellate authority in disposing of the appeal of the assessee petitioner and submitting that petitioner himself is to take initiative to find out who will be its appellate authority under the faceless system. Such stand of the department is highly unacceptable as to why the assessee petitioner is to be harassed for change in the system of the department. It is the department concerned who will have to do this task and inform that who is the Appellate Authority.
Considering the submission of Ms. Das De that the appeal of the petitioner has already been registered online and he will be given intimation in due course, I am not inclined to pass any order.
It is expected that the appeal in question of the petitioner will be disposed of expeditiously.
Accordingly, this writ petition being WPO 1461 of 2023 stands disposed of.
