2017 Supreme(SC) 729
A.K.SIKRI, ASHOK BHUSHAN
K. RAVEENDRANATHAN NAIR – Appellant
Versus
COMMISSIONER OF INCOME TAX – Respondent
Judgement Key Points
- Section 260A of the Income Tax Act, 1961 was inserted effective October 01, 1998, providing a statutory right of appeal to the High Court against orders of the Income Tax Appellate Tribunal, initially with a fixed court fee of Rs. 2,000/- under sub-section (2)(b), which was omitted effective June 01, 1999. (!) [1000596560001][1000596560013]
- After omission of the fixed court fee provision in Section 260A, court fees for such appeals in Kerala became governed by Section 52 of the Kerala Court Fees and Suits Valuation Act, 1959. (!) [1000596560001][1000596560013]
- Section 52A was inserted into the Kerala Court Fees and Suits Valuation Act, 1959 via Amendment Act of 2003, effective March 06, 2003 (deemed from October 26, 2002), prescribing court fee for appeals against Income Tax Appellate Tribunal or Wealth Tax Appellate Tribunal orders at 1% of assessed income exceeding two lakh rupees, subject to a maximum of ten thousand rupees, as per sub-item (c) of item (iii) of Article 3 of Schedule II.[1000596560001][1000596560016]
- The right to appeal is a substantive vested right that accrues upon initiation of proceedings (e.g., date of assessment order for assessee appeals or date appellate authority negates demand for department appeals), not merely procedural, and cannot be impaired by subsequent legislation unless expressly or by necessary intendment made retrospective. (!) (!) [1000596560004][1000596560005][1000596560006][1000596560007][1000596560011][1000596560012]
- For assessee appeals under Section 260A filed in the High Court, if the assessment order date is prior to March 06, 2003, Section 52A does not apply; court fee is payable as per the provision prevailing on the assessment date. (!) [1000596560014][1000596560015]
- For department appeals under Section 260A filed in the High Court, if the date the appellate authority set aside or negated the Assessing Officer's order is prior to March 06, 2003, Section 52A does not apply; court fee is payable as per the provision prevailing on that date. (!) [1000596560014][1000596560015]
- Section 52A of the Kerala Court Fees and Suits Valuation Act, 1959 is not retrospective and does not govern proceedings where the vested right to appeal accrued prior to March 06, 2003.[1000596560013][1000596560014]
- High Court erred in holding that all appeals filed on or after October 26, 2002 are governed by Section 52A regardless of when the underlying assessment or appellate order occurred.[1000596560003][1000596560010][1000596560011][1000596560012]
JUDGMENT
A.K. SIKRI, J.
By amendment in the Income Tax Act, 1961 (hereinafter referred to as the ‘IT Act’) in the year 1998, Section 260A was inserted providing for statutory appeal against the orders passed by the Income Tax Appellate Tribunal. In this very Section, under sub-section (2)(b), court fees on such appeals was also prescribed which was fixed at Rs.2,000/-. However, sub-section (2)(b) of Section 260A prescribing the aforesaid fee was omitted by amendment carried out in the said Act, with effect from June 01, 1999. It was presumably for the reason that insofar as court fee payable on such appeals are concerned, which are to be filed n the High Court, it is the State Legislature which is competent to legislate in this behalf.
2) In the State of Kerala, the law of court fee is governed by the Kerala Court Fees and Suits Valuation Act, 1959 (hereinafter referred to as the ‘1959 Act’). Section 52 thereof relates to the fee payable in appeals. Thus, with the omission of clause (b) of sub-section (2) of Section 260A of the IT Act, fee became payable on such appeals as per
Click Here to Read the rest of this document
Back
