CIT vs. Sairang Developers and Promoters Pvt.Ltd (Bombay High Court)

DATE: (Date of pronouncement)
DATE: May 7, 2014 (Date of publication)

Click here to download the judgement (sairang_strictures.pdf)

High Court imposes costs of Rs. 50,000 on AO for filing frivolous appeal & wasting public money & judicial time

Though the Bench clearly indicated to the department’s counsel that the appeal had no merit and gave the department an opportunity to withdraw, the department did not do so. HELD by the High Court, passing strictures and imposing costs:

“We do not find how Officers lower down in the hierarchy can take decisions to file Appeals and that too against the decision of the Tribunal. The tendency not to accept any adverse verdict on facts results in frivolous Appeals being filed in this Court. That causes huge loss to the public exchequer and results in wastage of precious judicial time of this Court. All this ought to have been discouraged long time back. The High Court has not adopted a strict approach and that has possibly encouraged the Revenue in filing Appeals to challenge essentially findings of fact and with regard to matters which should stand concluded at the level of the authorities. The officials should realize that the authorities like CIT(A) and the ITAT are envisaged as appellate and possibly final fact finding authorities and at least the Tribunal is last in that hierarchy. The fact finding therefore if demonstrably perverse or palpably erroneous and as would amount to unsettling the settled position in law alone should be questioned by filing Appeals to this Court. However, a routine exercise and by people who do not wish to take any responsibility, results in number of Appeals being filed and pending. This benefits no one and rather defeats larger public interest. The Revenue collection and equally the participation of the assessee in the exercise undertaken by the authorities to assess their income, therefore is affected adversely. None takes a position or decision because of pendency of matters and for a long time. In these circumstances, while dismissing this Appeal, we impose costs quantified at Rs.50,000/. The costs be paid to the assessee within four weeks from today. We at least now expect the authorities to take cognizance and initiate proceedings for recovery of this amount personally from such of the Officers who do not take decisions or postpone them endlessly. A copy of this order be forwarded to the CIT Pune. It should also be forwarded to the Chief CIT, Pune who may decide as to who should pay the costs personally as between them or anybody else who has brought about this situation.”

25 comments on “CIT vs. Sairang Developers and Promoters Pvt.Ltd (Bombay High Court)
  1. Deepak Soni says:

    The punishment in the form of monetary penalty is not at all for the erring officer.He shall act with a vengeance and recover ten times more amount by resorting to bribery which is very easy for the officer.He should have been corporeal punishment and sent to the judicial custody may be for a day or two if not more.

    • Dipak J Shah says:

      There was one case of my client. Where there was no at all default on the record of Tax Payment . Even then his account was sealed by I T Department …
      God Save Us.
      C A Shah D J

      • agreed, that would be a more better justice, for these kinds must die a natural death sooner than later!

        • Dipak J Shah says:

          Thanks for comments. Whose death ??? Asses-see not other wise!!!!!
          C A Shah D J

        • Dipak J Shah says:

          I am sorry to state that I had given Case Number Company Petition Number 16/17/18 of 1996 Ratnamani Engineering Limited High Court of Gujarat . Refer to Hon. High Court of Gujarat . Find out from web of High Court of Gujarat and find and read it carefully. The names would be disclosed fully itself.
          There are many cases in my life where all through and all Misconception , wrong Judgement and against the provisions of Law !!!!!
          God Save Us.
          C A Shah D J

          • Dipak Shah says:

            If you see the records of Company Petition No 17 of 1996 of High Court of Gujarat the pages number referred in Judgments are not on file?? Files has been kept secret !!! You will have no access ton the file!!! Kept it secret !! This way one can be protected by and from all corners!!! What can not be done in this world ? Serious point to be noted in Justice and Judicial way also. I am prevented and not permitted to see the file!!!




        today India wants to be some kind of capitalist country while it was a socialistic republic!

        • Dipak J Shah says:

          I am in USA . At Dallas. I can cntact you over phone right noe.
          C A Shah D J
          313 460 2969 Cell

          • sir, pls send a mail to me as talking would not help me masticate yr facts properly; sorry, do not misunderstand me! sir!

          • Dipak J Shah says:

            GIve me your Phone number . I will call you .

          • dr sir,
            i noted yr cell number; my care of cell 781-258-8238 pratima (my daughter) her home number 508-238-7471 (sometime may miss the call as a lot of advertisement calls surface; i am now at Easton, a suburb near Boston; location 115, high lands st, south Easton, MA 02375;(phone talk may not be enough to provide relevant inf, so chat line on google or facebook works better sir!)

            i would prefer you send me a synoptic note of the issue; that will give me what sections taxman used, whether limitation is followed by him besides how he arrived at how you have not filed ROI all particulars… that may open new ideas..

            .i observe Euripides(c.480 – 406) advice… ‘ Events will take their course it is no good of being angry at them; he is the happiest who wisely turns them to the best account’! so also Protagorus (c. 490 – 420)..’ Man is the measure of all things; of things which are not,that they are not.’! – the nature of God is a circle of which the centre is everywhere and the circumference is no where’ said Empedocles (c.490-430 BCE)

            One needs more especially lawyers have to work on all angles in every issue that way they convince judges to give verdicts..

            you may know in US Supreme court – there are equal number of conservative and liberal judges, as US follows a judicial review system based on Leissez faire – a capitalistic thought that balances well both rich and poor that way US works ore practically; that way American constitution is indeed very well made in just compact 13 pages or so unlike thick book of indian constitution which under Art 265 makes clear tax authority need to follow due process of law; not otherwise;

            you may know, a lot of ideations cannot be decoded easily, that is the ill of any country , but yet vouminous writings still surface but in fact confuses more!

            unlike India where anything goes to extremes!

            so all the problems get compounded and snowballs;

            tax man thinks make hay when sun shines;

            but several times their corrupt ideas work on then..but sorry they cannot realize how they get hooked?

            .but they do not know now indian SC gave a verdict… that CBI can directly proceed on any level bureaucrat up to cabinet secretary without any govt permission in regard to issues fall under prohibition Act!

            Again RTI Act is very comfortable to get all information from ITOs concerned by the assessee, no one can deny the information sought, yes you cannot ask why you have not furnished this and that but you an ask in a positive structure sentences then as a PIO he has to give information within time limit n if not he may be fined heavily by CIC!…regards. dr g.balakrishnan

      • Mr. shah; pls send email to ‘’ regards.. dr g balakrishnan,phd(economics) ML = LLM advocate Bombay High court, sr counsel S C,

    • Dipak Shah says:

      I think , I have suffered in many cases, due to bad practice of Lawyer and Advocates , Judges and Justice, they should be taken to task even though Retired. Unlike C B D T in Retired C I T took the matter up. This will make a landmark in Justices. I am going to write Hon. Chief Justice Supreme Court of India in this matter to be taken up for stern action on Judges , Justices appropriately.
      Shah D J

  2. Glad to note hob HC did right thing, though belatedly, yet it is a welcome trend, Yesterday hon Apex Ct rightly said CBI can proceed on top public servants in view of Art 14. No more need to get sanctions from governments .. right trend sirs, Needed to straighten the tottering machinery!

    • Dipak J Shah says:

      Right . Public Servant . What about Judiciary ?? Though on record something proved . Again ignoring the same fact and reference and also against provisions of Law of Land !!!
      Who will take action !!!! It is being done under the Supervision of Hon. Chief Justice of High Court !!!! No supervisor over the same!!! Only you have to go and opt for an appeal!!!Spending money for nothing on his fault!!!
      C A Shah D J

    • Dipak J Shah says:

      Thanks for reply. Your words are very Idioms and Good natured . But seems to be on positive in Favor of Judiciary. I can send you all documents positively. Can you give me your e mail id ?
      So taht I can send all documents which is Manipulated Judgment prima facie !!
      C A Shah D J

  3. Dipak J Shah says:

    Glad to note. But I have one question mark as to Sitting …………..Where all illegal process and hid materials fact from all Hon. Court , Advocates on record and , one Advocate became now Justice allowed and remained silent over this Fraud in accounts. See Judgment in full, Company Petition 17 of 1996 Merger Petition of Ratnamani Engineering Limited with Ratnamani Metals and Tubes Limited. One wonder ful name would come out How the Management and Collusion is made in Judgment also. A point to be noted !!!!!!!!

  4. well friends, the cost awarded for frivolous appeal suggest the appeal was not made in good faith i.e. it was not made with due care and attention. the action of filling frivolous appeal causes intimidation to the respondent party, and on the ground of such action the AO is liable to be prosecuted.

  5. Rajan, Tax Consultant says:

    Sir, There have been occasions, I understand, where the AOs are not in favor of filing appeals to High Courts. But it is widely understood that the higher ups who have to take the decision on the viability of filing appeal to High Court, are perturbed often by the tax effect involved and, out of fear (of whom? not known) they recommend appeals in many cases. No doubt the AOs are also not keen to do an in-depth study of the CIT(A)’s and Tribunal’s decision and make comprehensive reports/recommendations. But then that will not absolve the higher authorities of their responsibility to study the orders of the appellate authorities before taking a decision. There seemed to be even instances, where the AOs do not recommend appeals in their reports, but the higher authorities send such reports down and direct to re-submit the same with recommendation to file appeals.
    It is suggested that the Hon. Courts should summon the office records and also summon the Commissioners/Chief Commissioners and ask them to explain the circumstances in which they take decision to file frivolous appeals and the find, if any, should be imposed on the last authority who authorises such appeals and not the poor AOs.

    • i agree with Rajan, so hon high courts need to call all the relevant papers by promoting Mandamus writ into next writ …!
      so that to note who is the culprit and punish that officer….that would be natural justice rendered on Ld. AOs, i used to some time wonder how just Ld. AO would take law into his own hands, as he is down in the ladder!

      so high courts need to call all papers to track on who machinated such irrational work in revenue, whoever it is better demote that man is the system CBDT need to follow, unless it is proved in domestic inquiry otherwise, after HC decision, after all High court would not do any half backed act!

      Certorari writ is a well conceived writ, several decades ago, by British, as British administration in 18th,19th centuries aew indeed even to day ell conceived justice delivery system !

      I would say hon High courts need most of tax writs under certiorari writ base so Rajan view is well vindicated who is that Nobdoy is!

  6. gopal says:

    sir in recent past no of time it has been consistently observed the revenue even refer matter to high court /even the point issue decided by Apex court how can get it out

  7. I find AOs do not understand what is his jurisdiction on a ROI for an AY after 12 months of filing such ROI?

    they do not understand what is bad in law why some CITs(A) too … why should these kind of worthies are not fined by ITAT as also HC!

    if fined exemplary fines are levied on such gentle breeds naturally some deterrence can work that is a great day for assesses as also to governments why even to judiciary!

    • Dipak Shah says:

      At the same time it should be seen that Why and How C I T Approves Appeal filing with Hon. High Court!!!

      • CIT(A) as also CITs are equally brilliant like AOs;it means all of them are some glorified accounts clerks or some such talents whom we have at astronomical salaries and perks, so also our legislators seem to be some rudderless running onboats of corruption like these worthies too.

        Only greed runs at the cost of tax payers monies it seems!

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