Case Law Details
Union of India & Ors. Vs S.R. Cold Storage (Supreme Court of India)
In Union of India & Ors. vs. S.R. Cold Storage, the Supreme Court addressed a special leave petition regarding a cost of ₹5 lakh imposed on the Income Tax Department by the Allahabad High Court for initiating reassessment based on incorrect information. Initially set at ₹50 lakh, the cost was later reduced to ₹5 lakh. The Additional Solicitor General argued that the imposed cost was excessive and requested its annulment. The respondent’s counsel contended that the petition lacked merit but left the decision on the cost to the Court’s discretion. Ultimately, the Supreme Court dismissed the special leave petition while setting aside the ₹5 lakh cost. The ruling emphasizes the importance of accuracy in reassessment proceedings. Any pending applications related to this case were also disposed of as part of the decision.
FULL TEXT OF THE SUPREME COURT JUDGMENT/ORDER
Delay condoned.
Learned Additional Solicitor General Shri N. Venkatraman submitted that de hors merits of the matter, the petitioners Union of India and others are aggrieved by the huge quantum of cost imposed on the petitioners which was initially Rs.50,00,000/-(Rupees Fifty Lakhs only) and thereafter reduced to Rs.5,00,000/-(Rupees Five Lakhs only). That in the event, this Court is not inclined to interfere in the matter on merits then the order as to costs of Rs.5,00,000/- may be set aside.
Learned counsel for the respondent submitted that there is no merit in this special leave petition. However, as far as waiving of the cost is concerned, the matter is left to the discretion of this Court.
In the circumstances, we dismiss the special leave petition. However, the order regarding cost of Rs.5,00,000/- imposed on the petitioners herein is set aside.
Pending application(s), if any, shall also stand disposed of.
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