Taxpayer Entitled To Hearing On Merits If Appeals Were Dismissed By HC For Delay In Filing Paper-Book: Supreme Court

While setting aside the Rajasthan High Court orders, the Supreme Court restored the assessee's appeals by condoning the delay in filing the paper-book before High Court and observed that the assessee is entitled to have his appeals heard on merits.

The Division Bench comprising of Justice P.S. Narasimha and Justice Aravind Kumar, observed that “As Appeal No. 817 of 2008 stood dismissed for noncompliance, the High Court was of the opinion that inconsistent orders cannot be passed and proceeded to dismiss even Appeal No. 816 of 2008 without examining the matter on merits. We are of the opinion that the Appellant is entitled to have his appeals heard on merits”.

As per the brief facts of the case, for the AY 2001-02, the AO passed an assessment order disallowing interest, which was confirmed by both the CIT(A) as well as the ITAT. On appeal, the High Court passed an order directing the assessee to file the paper-book within a period of 15 days failing which appeal was to be dismissed without reference to the Court. Since the paper-book was not filed within prescribed time, the Registrar dismissed the appeal. The High Court further dismissed the application for restoration of appeal. Even the review against the said order was dismissed.

The Bench observed that the appeal for AY 2001-02 stood dismissed for non-filing of paper-book within the prescribed time.

The High Court opined that inconsistent order could not be passed for AY 2002-03, hence proceeded to dismiss the appeal without examining the matter on merits, added the Bench.

Therefore, remarking that the High Court would have condoned the delay in filing the paper books for AY 2001-02 had the matter been taken up along with AY 2002-03, the Apex Court allowed the assessee's appeal and directed the High Court to take up the appeals for both the years together after giving an opportunity to the parties for proper adjudication and determination on merits.

Counsel for Appellant: Advocates Manoj Swarup, Abhishek Swarup, and Chetan Sharma

Counsel for Respondent: ASG N. Venkatraman, Senior Advocate Arijit Prasad

Case Title: Herbicides India Limited verses ACIT

Case Number: Civil Appeal Nos. 267-268 of 2024

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