The Supreme Court dismissed the Special Leave Petition (SLP) as there was no satisfactory explanation for the delay of 204 days in filing the SLP against the Income Tax Appeal. The SLP arose out of an impugned final judgment and order passed by the High Court of Delhi.
G K Choksi and Co, the assesee was engaged as an auditor in the exercise of the Assessing Officer’s (AO) powers under Section 142(2A) of the Income Tax Act, 1961 [“the Act”].
The petitioner firm is concerned, that the audit has been carried out vis-a-vis three entities: (i) Futurz Next Services Limited, (ii) Jaypee Financial Services Limited, and (iii) Sahara India (Firm). The audit of the first entity, i.e., Futurz Next Services Limited, is concerned, the determination was made on 24.11.2015 and accordingly, payment of Rs.49,00,000/- was made on 02.01.2020.
The High Court held that interest ought to be paid to the petitioner at the rate of 7% per annum. Interest will run from the date of determination in each case till the date of payment of the audit fee.
A two-judge bench of Justice J B Pardiwala and Justice Manoj Misra observed that there is a delay of 204 days in filing the Special Leave Petition and the delay has not been satisfactorily explained. The Special Leave Petition is dismissed on the grounds of delay.
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