2014 (2) TMI 563 - SC - Income Tax

Mandatory requirement of reasoned order - TDS u/s 194C - Held that - The High Court without even adverting to any one of the questions of law that were raised and canvassed before it, by a cryptic and non- speaking order had dismissed the Income Tax Appeals - while disposing of an appeal should first raise substantial question of law for consideration and decision and thereafter decide the same by a speaking order by assigning appropriate reasons - an order which does not contain reasons is no order in the eye of law and requires to be set aside the order of the HC set aside and the matter remanded back to the HC for disposal Decided in favour of Revenue.

Summary

Issues:
1. Delay condonation and leave granted.
2. Appeal against High Court order in Income Tax Appeal Nos. 49 and 152 of 2010.
3. Dismissal of appeals by the High Court without addressing raised questions of law.
4. Lack of reasons in the High Court's order.
5. Remand of the matter back to the High Court for fresh disposal.

Analysis:
1. The Supreme Court first condoned the delay and granted leave for the appeals against the High Court's order in Income Tax Appeal Nos. 49 and 152 of 2010 dated 12.10.2011. The High Court had dismissed the appeals filed by the revenue, citing no substantial question of law arising in the matter.

2. The appeals were directed against the order passed by the High Court, which dismissed the Income Tax Appeals without addressing the questions of law raised by the revenue. The High Court's order lacked reasoning for the dismissal, prompting the Supreme Court to intervene.

3. The High Court's dismissal of the appeals without considering the questions of law raised was deemed improper by the Supreme Court. The lack of reasons in the High Court's order was highlighted as a significant flaw, as it did not fulfill the requirement of providing a speaking order with appropriate justifications.

4. In light of the deficiencies in the High Court's order, the Supreme Court set aside the order and remanded the matter back to the High Court for fresh disposal in accordance with the law. The Supreme Court emphasized the importance of addressing each question of law framed by the Revenue and providing an opportunity for the parties to be heard.

5. The Supreme Court clarified that it had not expressed any opinion on the merits or demerits of the case, keeping all contentions raised by both parties open to be agitated before the High Court upon the fresh disposal of the matter. The Supreme Court's decision aimed to ensure a fair and reasoned consideration of the appeals based on the questions of law raised by the revenue.