Case Law Details
Herbicides India Limited Vs ACIT (Supreme Court of India)
Introduction: In a recent legal development, the Supreme Court of India addressed a crucial issue concerning Herbicides India Limited’s appeals against the Commissioner of Income Tax’s order for Assessment Years 2001-2002 and 2002-2003. The High Court of Rajasthan had dismissed these appeals without delving into the merits due to a delay in filing paper books.
Detailed Analysis: For the Assessment Year 2001-2002, the Assessing Officer disallowed interest allowance on 10.03.2004. Subsequent appeals were dismissed by the Commissioner of Income Tax (18.09.2007) and the Income Tax Appellate Authority (20.06.2008). The High Court initially directed the filing of paper books by 31.01.2012; however, non-compliance led to dismissal on 30.04.2012. Despite subsequent attempts for restoration (25.02.2015 and 26.04.2017), the High Court maintained the dismissal.
Similarly, the Assessment Year 2002-2003 saw the Assessing Officer disallowing an allowance on 16.02.2005. The appeal by the assessee was initially allowed but later overturned by the Income Tax Appellate Tribunal. The High Court, by orders dated 08.02.2009 and 09.04.2012, directed the filing of paper books. However, the dismissal of Appeal No. 817 of 2008 influenced the fate of Appeal No. 816 of 2008, leading to their joint dismissal on 10.05.2017.
The Supreme Court, upon scrutiny, found that the High Court had not considered the matter on merits and opined that the appeals deserved a fair hearing. Condoning the delay in filing paper books for Appeal No. 817 of 2008, the Supreme Court set aside the orders of 25.02.2015 and 26.04.2017. Furthermore, the Court restored both Appeal No. 817 of 2008 and Appeal No. 816 of 2008 to the High Court’s records. The directive is for the High Court to hear both appeals together, ensuring a comprehensive examination of the merits.
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