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Kerala HC Rules Income Tax Appeals Cannot Be Dismissed Solely for Non-Appearance
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CNBC TV18•09-10-2026, 12:31
Kerala HC Rules Income Tax Appeals Cannot Be Dismissed Solely for Non-Appearance
- •The Kerala High Court quashed an order dismissing actor Jayasurya's income tax appeal due to repeated non-appearance, ruling that authorities must decide cases on merits under Section 250(6) of the Income Tax Act.
- •The Supreme Court reiterated in Orient Crafts Limited v. Commissioner of Income Tax that administrative CBDT circulars are binding on tax authorities but not on courts.
- •The Supreme Court ruled that Torrent Power Ltd. cannot receive a tax refund under the doctrine of unjust enrichment because the financial burden was passed on to consumers, directing the funds to the Consumer Welfare Fund.
Key Questions Answered
No, the Kerala High Court held that an income-tax appellate authority cannot dismiss an appeal solely because the assessee failed to appear for the hearing, and must instead address the grounds raised on merits under Section 250(6) of the Income Tax Act.
No, the Supreme Court reiterated in Orient Crafts Limited v. Commissioner of Income Tax that CBDT administrative circulars bind subordinate tax authorities but cannot override statutory provisions or bind courts.
The Supreme Court ruled that Torrent Power Ltd cannot receive a tax refund under the doctrine of unjust enrichment because the financial burden had already been passed on to electricity consumers, and directed the funds to the Consumer Welfare Fund.
