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August 2011

Appeal to the High Court — Delay in filing the appeal — High Court to examine the cases on merits and should not dispose of cases merely on the ground of delay.

By Kishor Karia | Chartered Accountant
Atul Jasani | Advocate
Reading Time 1 mins
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[CIT v. West Bengal Infrastructure Development Finance Corporation Ltd., (2011) 334 ITR 269 (SC)] Looking to the amount of tax involved in the case, the Supreme Court was of the view that the High Court ought to have decided the matter on the merits. According to the Supreme Court, in all such cases where there is delay on the part of the Department, the High Court should consider imposing costs, but certainly it should examine the cases on the merits and should not dispose of cases merely on the ground of delay, particularly when huge stakes are involved.

Accordingly, the order of the High Court was set aside and the matter was remitted to the High Court to decide the case de novo in accordance with law.

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