Nusli N. Wadia vs Assistant Commissioner Of Income-Tax

Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2022 Supreme(SC) 1966

SUPREME COURT OF INDIA
SANJIV KHANNA, BELA M. TRIVEDI, JJ.
Nusli N. Wadia - Petitioner
Versus
Assistant Commissioner Of Income-Tax & Anr. – Respondents
Petition(s) for Special Leave to Appeal (C) No(s). 9175 Of 2022 (Arising out of impugned final judgment and order dated 07-01-2022 in WP No. 795/2009 passed by the High Court of Judicature at Bombay)
Decided On : 05-08-2022

Advocates Appeared:
For the Petitioner: Mr. Percy Pardiwala, Sr. Adv., Mr. Madhur Agrawal, Adv., Mr. Kunal Cheema, AOR, Ms. Aditi Deshpande Parkhi, Adv., Ms. Ruchita Kunal Cheema, Adv.

Headnote:(A) Income Tax Act, 1961 - Section 147 - Special Leave Petition against non-speaking order - The court did not issue notice and allowed the petitioner to file return of income under protest, leaving open the rights and contentions for future challenge, directing adherence to procedural guidelines established in case law. (Paras 1, 3)

(B) Judicial Review - The order was criticized as non-speaking and cryptic, but the court underlined the need for procedural fairness without precluding the petitioner's right to contest adverse outcomes. (Paras 1, 2)

Facts of the case:
The petitioner challenged an order from the High Court of Judicature at Bombay describing it as cryptic and sought special leave to file a return of income under conditions established in prior case law.

Findings of Court:
The court pointedly did not undermine the petitioner’s future rights by allowing filing of returns under protest and adhering to directives laid out in precedent.

Issues: The principal issue involved whether the procedure outlined by the previous ruling must be followed in light of the High Court's cryptic order.

Ratio Decidendi: The court maintained that while the order was non-speaking, adherence to established procedure in evaluating income tax matters is paramount, leaving all contentions unresolved for future consideration.

Result: Special leave petition dismissed.

Table of Content
1. non-speaking and cryptic orders in tax proceedings (Para 1)
2. leaving contentions open in legal proceedings (Para 2)
3. dismissal of special leave petition (Para 3 , 4)

ORDER :

1. The impugned order dated 07.01.2022, it has been rightly contended, is a non-speaking and cryptic order. However, we are not inclined to issue notice in the present special leave petition and leave it open to the petitioner to file return of income under protest within one month, without prejudice to the rights and contentions, and ask for the reasons for issue of notice under Section 147 of the INCOME TAX ACT , 1961. The procedure as prescribed in “GKM Driveshafts (India) Ltd. Vs. ITO [reported in (2003) 259 ITR 19”, would be followed by the assessing officer. In case of an adverse order, it will be open to the petitioner to challenge the same.

2. All contentions are left open.

3. In view of the aforesaid, the special leave petition is dismissed.

4. Pending application(s), if any, stand disposed of.

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2022 Supreme(SC) 1966

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