2018 (7) TMI 1833 - SCH - Income Tax

Validity of assessment u/s 153C - Two documents stated to have been recovered during the search which did not belong to the Assessee - Held that - There is a delay of 660 days in filing this Special Leave Petition. Moreover, it is also an admitted fact that on the same question of law, the petitioner had earlier filed Special Leave Petitions which were dismissed by this Court way back in December, 2017. In spite thereof, the present special leave petition is filed in June, 2018 even when the issue had attained finality. We deprecate this tendency of the Income Tax Department in filing special leave petition mindlessly and that to after such abnormal delays. This Special Leave Petition is dismissed both on the ground of delay as well as on merits with costs of ₹ 50,000/- which shall be deposited by the Income Tax Department with the Supreme Court Legal Services Committee within four weeks. This Order shall also be brought to the notice of the Chairman, Central Board of Direct Taxes so that its house is set in order.

Summary

The Supreme Court dismissed a Special Leave Petition due to a delay of 660 days and previous dismissals on the same legal question. The Income Tax Department was criticized for filing petitions mindlessly and with abnormal delays. The Department was ordered to pay costs of Rs. 50,000 and to deposit it with the Supreme Court Legal Services Committee. The Central Board of Direct Taxes was to be informed of this order for corrective action.