2007 (2) TMI 117

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..... he appeal. The Revenue has also questioned the correctness of the Tribunal in dismissing the appeal without going into the merits of the case. 2. It is seen that the assessee Bank is a Government of India Undertaking. The assessing authority levied penalty for the failure to file the annual T.D.S. Return. Against that order, the assessee preferred an appeal before the Commissioner of Income Tax (Appeals). Accepting the reasons given by the assessee, the Commissioner deleted the penalty and allowed the assessee's appeal. An appeal was preferred before the Tribunal by the Revenue in respect of the Assessment Year 1999-2000 and 2000-2001 as against the order of the Commissioner, deleting the penalty under Section 272A(2)(c) of the Inc .....

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..... e Tribunal was right in law, without going into the facts and circumstances of the case and dismissed the appeal in limine, is valid? " 5. We fail to appreciate the plea of the Revenue that the failure to obtain the approval from the Committee would not be fatal to the maintainability of the appeals. It must be noted that the Tribunal referred to the decision of the Apex Court reported in Oil and Natural Gas Commission v. Collector of Central Excise [1992] Suppl.2 SCC 432 and held that no litigation between the Government and the Government Undertaking could proceed before any Court without the approval of the High Power Committee known as COD. Further, the Apex Court, in the decision reported in Mahanagar Telephone Nigam Ltd. v .....

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..... tee only has to refuse permission to litigate. No right of the Department/public sector undertaking is affected in such a case. The litigation being of a frivolous nature must not be brought to court. To be remembered that in almost all cases one or the other party will not be happy with the decision of the High Powered Committee. The dissatisfied party will always claim that its rights are affected, when in fact, no right is affected. The Committee is constituted of highly placed officers of the Government, who do not have an interest in the dispute, it is thus expected that their decision will be fair and honest. Even if the Department/public sector undertaking finds the decision unpalatable, discipline requires that they abide by it. Oth .....

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