2014 (7) TMI 1192 - HC - Income Tax

Court Upholds Dismissal of Petition Challenging Tribunal Order on A.Y. 1996-97

Commissioner of Income Tax 2 Versus M/s. Central Bank of India

The Court dismissed the petitioner's challenge to the Income Tax Appellate Tribunal's order seeking recall of an order related to A.Y. 1996-97. The ... COD Clearance - Recall of order - Mechanism of obtaining an approval from the Committee on Disputes (COD) for prosecuting the appeals - Held that:- Revenue had not made any application to obtain approval of the COD before it filed its appeal for A.Y.1996-98 to the Tribunal. COD mechanism being very much in force at that time. The recall of its earlier orders in respect of ONGC by the Supreme Court in the case of ELECTRONICS CORPORATION OF INDIA LTD [2011 (2) TMI 3 - Supreme Court ] only does away with the practice in view of the changed circumstances. The necessity of obtaining approval from COD which was in practice at the relevant time cannot be done away with on the ground that the Supreme Court has now held that the practice needs to be discontinued. In the above facts and circumstances, we see no reason to entertain the present petition. Accordingly, writ petition is dismissed with no order as to costs. Issues:Challenge to order of Income Tax Appellate Tribunal under section 254(2) of the Income Tax Act for recall of an order related to A.Y. 1996-97.Analysis:The petitioner revenue challenged the order dated 5.7.2013 passed by the Income Tax Appellate Tribunal (the Tribunal) dismissing their Misc. Application under section 254(2) of the Income Tax Act seeking to recall the order dated 20.2.2008 related to A.Y. 1996-97. The Tribunal had earlier dismissed the petitioner's appeal for A.Y. 1996-97, stating that no action was demonstrated to have been taken by the revenue to obtain approval from the Committee on Disputes (COD). The petitioner filed a Misc. Application based on a Supreme Court decision in 2011 stating that approval from COD was no longer required for prosecuting appeals. However, the Tribunal dismissed the Misc. Application on 5.7.2013, citing that it was filed beyond the statutory period of 4 years and after a delay of more than 11 months post the Supreme Court decision. The petitioner's counsel admitted that no application was made to obtain COD approval before filing the appeal to the Tribunal for A.Y. 1996-97, despite the COD mechanism being in force at that time.In response to the petitioner's argument that the Supreme Court decision in the case of ELECTRONICS CORPORATION OF INDIA LTD did away with the necessity of obtaining COD approval, the Court held that the practice of obtaining approval from COD, which was in place at the relevant time, could not be disregarded solely based on the Supreme Court's decision discontinuing the practice. The Court emphasized that even though the COD mechanism was discontinued, the necessity of obtaining approval at the time of filing the appeal could not be ignored. The Court found no reason to entertain the petition and dismissed the writ petition with no order as to costs.This judgment highlights the importance of adhering to procedural requirements and the significance of obtaining necessary approvals before taking legal actions, even if the legal landscape changes over time. It underscores the principle that past practices cannot be overlooked solely based on subsequent legal developments, and parties must comply with the requirements in place at the time of their actions.