2010 (12) TMI 675 - SCH - Income Tax

Condonation of Delay - Looking to the amount of tax involved in this case,are of the view that the High Court ought to have decided the matter on the merits - In all such cases where there is delay on the part of the Department - HC should not dispose of cases merely on the ground of delay, particularly when huge stakes are involved - matter is remitted to the High Court to decide the case de novo in accordance with law.

Summary

The Supreme Court allowed the civil appeal, set aside the impugned order, and remitted the matter to the High Court for a fresh decision within four months. The High Court was advised to consider imposing costs in cases of delay by the Department but to decide on merits, especially in cases with significant tax amounts involved.