Facts of the Case

The income-tax reference was received by the Delhi High Court in the year 1991. Despite the passage of nearly fourteen years, the Revenue did not take the necessary steps to furnish the paper books and other documents required for disposal of the reference.

At the hearing, counsel appearing for the Revenue sought additional time to complete the requisite formalities. The Court noted that sufficient opportunity had already been granted over a prolonged period and considered the delay unjustified.

 

Issues Involved

  1. Whether further time should be granted to the Revenue for filing the paper books required for disposal of the reference.
  2. Whether the reference could continue to remain pending despite the Revenue's prolonged failure to comply with procedural requirements.

 

Petitioner’s (Revenue’s) Arguments

  • The Revenue requested the Court to grant additional time to furnish the necessary paper books and complete the procedural requirements for hearing of the reference.

 

Respondent’s Arguments

  • The order does not record any specific submissions made on behalf of the respondent, Eternal Science of Men's Society.

 

Court Order / Findings

The Delhi High Court observed that:

  • The reference had been pending since 1991.
  • The Revenue had failed for nearly fourteen years to furnish the requisite paper books necessary for disposal of the matter.
  • No sufficient ground existed for granting further time.

Accordingly, the Court returned the reference unanswered.

However, the Court granted liberty to the Revenue to seek recall of the order if the required paper books were filed within six months from the date of the order.

 

Important Clarification

  • The Court did not adjudicate any substantive question of tax law.
  • The reference was not decided on merits.
  • The matter was returned unanswered solely because of the Revenue's failure to comply with procedural requirements despite an exceptionally long period of time.
  • Liberty was reserved in favour of the Revenue to seek restoration upon filing the paper books within the stipulated period of six months.

 

Sections Involved

·         The order does not discuss any specific provision of the Income-tax Act, 1961 on merits. The matter relates to a pending income-tax reference before the Delhi High Court, where the Revenue failed to furnish the requisite paper books necessary for adjudication.

Link to Download the Order

https://delhihighcourt.nic.in/app/case_number_pdf/2005:DHC:12852-DB/61316122005ITR681991_154007.pdf

 

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