Restoration of SLPs without reasoning: A worrying precedent in the JAO/FAO controversy

The Hon'ble SC has recently restored the Revenue's dismissed SLPs in the cases of Prakash Patil & Deepanjan Roy in the ongoing JAO/FAO controversy. These will now be heard along with the batch of nearly 1000 cases pending before another bench.

What stands out is that the restoration orders merely state that the SLPs are restored in view of the averments made in the Revenue's application, without specifying any reason.

Ironically, earlier this year, the Hon'ble SC had come down heavily upon the Madras High Court for recalling an order and observed that parties must be heard before recalling an order and valid reasons for recall must be provided.

In the absence of any reasoning in these orders, one can't help but wonder if a decision can be recalled just because a large batch of cases on same issue is pending adjudication before another bench of equal strength. If so, should the assessees too be permitted to seek restoration of their dismissed cases before the Courts or the Tribunal on same logic?

The critical question is: Should judicial decision making be swayed merely because of the volume of cases or quantum involved?

Does it not encourage the parties to deliberately perpetuate an error and let it snowball to such an extent, that the sheer magnitude, in itself, becomes the primary argument before the Court? This has happened in earlier rounds of reassessment litigation.

There is another concern as well. In Prakash Patil's case, for instance, the SLP was earlier dismissed on merits as well as delay of 248 days, since the delay was not "satisfactorily explained" by the Revenue.

When it would be re-heard with the batch of nearly 1000 cases, it seems unlikely that the issue of delay would be adjudicated separately for each case. A common decision on merits may follow which would extend to even such cases which actually deserve to be thrown out at the threshold on account of delay/laches.

Of course, this is just 1 amongst the 1000 pending matters on the same issue before the SC. But for the concerned assessee, its not just a statistic. Its his hard-earned money and his right to fair adjudication in accordance with the rule of law and limitation.

And that right, I humbly believe, should not be lost in the crowd.


#Reassessment #Incometax #Litigation