New Delhi: Income Tax department has come
under sharp criticism from the Delhi High Court for filing
appeal against tax tribunal decisions in which issue of law is
A bench comprising Chief Justice Dipak Misra and Justice
Manmohan said that judicial capital is extremely limited and
it should not be wasted in needless litigations.
"In our view, appeal should not be filed in matters where
either no question of law arises or the issue of law is a
settled one. We give this direction because the `judicial
capital` in terms of manpower and resources is extremely
limited," the court said.
The court`s direction came on a petition filed by the
revenue department challenging an order of tax tribunal ITAT.
The court, which was inclined to impose cost on the
department, refrained by warning it to be careful in future
before filing appeal against ITAT.
"Though we were initially inclined to impose costs yet
we are of the opinion that ends of justice would be met by
giving a direction to the revenue to be more careful before
filing appeals in a routine manner," the bench said.