In a significant legal development, the Supreme Court has overturned orders from the Rajasthan High Court, restoring the appeals of an assessee in the case of Herbicides India Limited versus ACIT. The apex court, led by Justices P.S. Narasimha and Aravind Kumar, set aside the High Court’s dismissal, emphasizing the taxpayer’s entitlement to a hearing on the merits of the case.
The complex saga revolves around the assessment order for the Assessment Year (AY) 2001-02, where the Assessing Officer disallowed interest, a decision upheld by both the CIT(A) and the ITAT. The High Court, in response to the appeal, directed the assessee to submit the paper-book within 15 days, with a warning of dismissal if the deadline was not met. Subsequently, the appeal was dismissed for non-compliance when the paper-book wasn’t filed on time. The High Court then rejected the application for restoration, and even a review against this decision faced dismissal.
The Supreme Court’s bench acknowledged the dismissal of the AY 2001-02 appeal due to the paper-book not being filed within the stipulated time. The High Court, concerned about inconsistent orders, proceeded to dismiss the AY 2002-03 appeal without delving into the merits of the case.
Highlighting the court’s opinion, the bench stressed that had the High Court considered both AY 2001-02 and AY 2002-03 together, it might have condoned the delay in filing the paper-books for the former. Consequently, the Supreme Court allowed the assessee’s appeal, instructing the High Court to revisit both years’ appeals jointly, providing an opportunity for proper adjudication and determination on merits.
Representing the appellant were Advocates Manoj Swarup, Abhishek Swarup, and Chetan Sharma, while ASG N. Venkatraman and Senior Advocate Arijit Prasad served as counsel for the respondent. This decision marks a crucial turning point in the legal battle between Herbicides India Limited and ACIT.
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