Supreme Court criticizes Revenue for lack of assistance in tax appeals, emphasizes revisional power. The Supreme Court expressed disappointment with the Revenue and officers for lack of assistance in tax appeals. The case focused on the availability of ...
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Supreme Court criticizes Revenue for lack of assistance in tax appeals, emphasizes revisional power.
The Supreme Court expressed disappointment with the Revenue and officers for lack of assistance in tax appeals. The case focused on the availability of revisional power under Section 263 of the Income Tax Act, 1961 regarding orders by the inspecting Assistant Commissioner of Taxes. Despite the issue becoming academic due to prior decisions in favor of the assessee, the court directed cases to be decided on their merits if the Revenue could show the question was relevant in other cases. The matter was adjourned for further consideration, with the order to be brought to the attention of the Chairman of the Central Board of Direct Taxes for action.
Issues: Availability of revisional power under Section 263 of the Income Tax Act, 1961 in respect of orders passed by the inspecting Assistant Commissioner of Taxes
In the judgment delivered by the Supreme Court, the court expressed deep disappointment with the Revenue and concerned officers for their lack of assistance in tax appeals pending before the court. The main issue at hand was the availability of revisional power under Section 263 of the Income Tax Act, 1961 concerning orders passed by the inspecting Assistant Commissioner of Taxes. The court highlighted the need for prompt remedial measures to address the large number of pending tax appeals. The question of law to be answered was in the context of the provisions of Sections 125 and 263 of the Act, as amended in 1984 and 1988.
The court noted that the question had become academic as the tax liability of the assessee had already been decided in their favor in previous and subsequent assessment years. Despite this, the Additional Solicitor General urged the court to decide the question of law as it might still be relevant in other cases. The court emphasized that the issue should not be left open and directed that the cases would be decided on their merits only if the Revenue could demonstrate that the question posed was a live issue in other adjudications. The cases were listed again for further consideration on 17th March 2016, and the order was to be brought to the attention of the Chairman of the Central Board of Direct Taxes for necessary action.
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