Commissioner of Income Tax-4 vs Hindustan Organics Chemicals Ltd.

This appeal by the revenue under Section 260-A of the Income Tax Act, 1961 (the Act) challenges the order of the Income Tax Appellate Tribunal (the Tribunal) dated 9 November 2012. The assessment year involved is 2008-09.

The impugned order of the Tribunal has followed its decision in the respondent-assessee''s own case for the assessment year 2007-08. When the matter appeared for admission, we asked Mr. Malhotra, learned counsel appearing for the revenue whether the revenue has filed any appeal from the order of the Tribunal for the assessment year 2007-08 or it has accepted it. At that stage, i.e. on 10 June 2015, as the appeal was being adjourned, Mr. Malhotra stated that the appeal of the revenue for the assessment year 2007-08 was dismissed for non-removal of office objections. However, he further stated that he would find out the status of the order passed by the Tribunal for the assessment year 2007-08.

Today when the matter was called out, Mr. Malhotra has filed an affidavit of one Mr. Singh, Deputy Commissioner of Income Tax, pointing out that the revenue''s appeal from Tribunal''s order for Assessment Year 2007-08 was dismissed for non-removal of office objections on 29 November 2012. The affidavit further states that the Assessing Officer concerned was not aware of the same. Only on the direction of this Court on 10 June 2015 became aware of its dismissal. The affidavit further states that, on perusal of the record there is nothing to indicate that his office was informed about the appeal being dismissed for non-removal of office objections by the counsel.

We find that in the appeal memo filed in this Court, there is an endorsement on page No. 9, which reads as under:

"Remark: Please incorporate the present status of the appeals in assessee''s own case for A.Y. 2006-2007 and 2007-2008."

The appeal memo has been authorized and signed by the Commissioner of Income Tax. It has been verified and declared by the Assistant Commissioner of Income Tax. None of the two authorities put in any particulars in respect of appeals from the order of the Tribunal for the Assessment Years 2006-07 and 2007-08. This appeal was filed on 17 May 2013. If the Assessing Officer as well as the Commissioner of Income Tax who have signed the appeal memo had made necessary enquiries before filing this appeal, they would have learnt of the status of the appeal at the very latest by 17 May 2013 when the appeal was filed. Incidentally, the affidavit does not offer any explanation with regard to the Assessment Year 2006-07. This non-filing of appeals and letting it get dismissed in one assessment year or in case of another assessee and seeking to pursue it in another year or in case of another assessee, leaves a lurking suspicion on why law is not being equally applied across all assessees.

We feel that the officers of revenue should keep track of the appeals/petitions to which they are parties before this Court till the proceedings are finally disposed of and also adopt measures to ensure that the law is equally applied across all assessees. While we are at this, we would also like to draw attention to the fact that we have noticed that many appeals are being filed in this Court which stand concluded either by earlier decisions of the Tribunal in case of some other assessee and no appeals therefrom are filed in this Court. The appeals are filed by the revenue mechanically without application of mind in respect of matters which are already concluded by decisions of this Court and accepted or earlier orders of the Tribunal which are accepted by the revenue.

We would like a senior officer of the Revenue to take notice of the above and put on record the steps being taken to ensure that the officers of the revenue concerned with the issue in Court would keep themselves involved in the proceedings till such time this Court finally disposes of the appeal/writ as the case may be. Besides, also point out the steps being taken to ensure that law is equally applied. In case no affidavit is filed before the next date, the Chief Commissioner of Income Tax should personally remain present and explain the steps being taken at their end.

For the aforesaid purpose, at the request of Mr. Malhotra, we adjourn the present appeal to 4 August 2015.