4.—Appeals to Supreme Court

Appeal to Supreme Court.

367

An appeal shall lie to the Supreme Court from any judgment of the High Court delivered on an appeal made to High Court in respect of an order passed under section 363 in any case which the High Court certifies to be fit for appeal to the Supreme Court.

Explanation

Section Summary:

This section outlines the process for appealing to the Supreme Court of India in income tax matters. Specifically, it allows for an appeal to the Supreme Court if the High Court certifies that a case is fit for appeal. This applies to judgments delivered by the High Court in cases where the High Court has already heard an appeal against an order passed under Section 363 of the Income Tax Act.

Key Changes:

• Certification Requirement: The High Court must certify that the case is fit for appeal to the Supreme Court. This is a procedural safeguard to ensure that only significant or complex cases reach the Supreme Court.
• Scope of Appeal: The appeal is limited to judgments delivered by the High Court in cases arising from orders under Section 363 (which deals with orders passed by the Income Tax Appellate Tribunal).

Practical Implications:

• Taxpayers and Businesses: This section provides a final avenue for appeal in income tax disputes, but only in cases deemed significant by the High Court. It ensures that only cases with substantial legal or factual issues proceed to the Supreme Court, reducing unnecessary litigation.
• Judicial Efficiency: By requiring High Court certification, the law aims to streamline the appellate process and prevent the Supreme Court from being overwhelmed with routine tax disputes.

Critical Concepts:

• Section 363: This section pertains to orders passed by the Income Tax Appellate Tribunal (ITAT). Appeals against ITAT orders are first heard by the High Court, and only after that can they potentially proceed to the Supreme Court.
• High Court Certification: The High Court must explicitly certify that the case involves a substantial question of law or is otherwise significant enough to warrant Supreme Court review.

Compliance Steps:

1. Obtain High Court Judgment: Ensure that the High Court has delivered a judgment on an appeal related to an order under Section 363.
2. Seek Certification: Apply to the High Court for certification that the case is fit for appeal to the Supreme Court.
3. File Appeal: If certified, file the appeal with the Supreme Court within the prescribed time limits.

Example:

Suppose a taxpayer disputes an order passed by the ITAT under Section 363 and appeals to the High Court. The High Court delivers a judgment, but the taxpayer believes the decision involves a significant legal error. The taxpayer can request the High Court to certify the case as fit for appeal to the Supreme Court. If the High Court agrees, the taxpayer can then file an appeal with the Supreme Court for a final resolution.

This section ensures that only cases with substantial legal importance reach the Supreme Court, maintaining judicial efficiency while providing a final recourse for significant disputes.