Today, On 23rd September, The Supreme Court reprimanded the Income Tax Department for filing an appeal over a small sum of Rs. 1.5 lakh. The criticism came as the court dismissed an appeal challenging a Calcutta High Court order, which affirmed the decision of the Income Tax Appellate Tribunal. The Supreme Court expressed concern over the department’s tendency to pursue insignificant cases, burdening the judicial system.
New Delhi: The Supreme Court, On Monday, criticized the Income Tax Department for engaging in prolonged and costly litigation over minor amounts.
A Bench of Justices Sanjiv Khanna and PV Sanjay Kumar stressed the need for responsibility when approaching the apex court.
Justice Khanna remarked,
“Someone has to take responsibility before coming to the Supreme Court. We fail to understand why this case is being pursued for such a small amount. So much litigation is caused by the income tax department! How much are you spending on this? One day’s appearance fees at the Supreme Court will cost you more,”
The Supreme Court made these remarks while dismissing an appeal against a Calcutta High Court ruling that had upheld the decision of the Income Tax Appellate Tribunal. The Bench expressed frustration, noting that the disputed amount was only Rs. 1.5 lakh, and any significant legal questions could be addressed in a more appropriate case.
This isn’t the first time the Supreme Court voiced its displeasure over unnecessary litigation. In August last year, the Court expressed concern over the high volume of frivolous cases filed by the government, despite ongoing efforts to formulate a litigation policy.
Read Also: Supreme Court Questions Income-Tax Department’s Delay in Bharti Airtel Appeal
The filing of such baseless petitions has contributed to the growing workload of the judiciary. In May 2022, a Bench led by Justice BR Gavai pointed out that about 40 percent of litigation pursued by both Central and State governments was without merit.
In April 2023, Chief Justice of India DY Chandrachud also urged the Central government to embrace mediation as a preferred method of resolving legal disputes, rather than resorting to litigation.
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