Judgment summary
The Principal Commissioner of Income Tax Central 3 filed a Special Leave Petition before the Supreme Court of India, challenging the final judgment and order of the High Court of Delhi dated 29-08-2024 in ITA No. 872/2019, which had been decided in favour of Pernod Ricard India Private Limited.
The Supreme Court dismissed the Special Leave Petition on two independent grounds: first, a gross delay of 384 days in filing, which was not satisfactorily explained by the petitioner; and second, on the merits, the Court found no good ground to interfere with the impugned order of the High Court.
Two interlocutory applications, IA No. 136688/2026 for condonation of delay in filing and IA No. 136689/2026 for condonation of delay in refiling and curing defects, were also disposed of as part of the same order.
Background
The underlying dispute originated from ITA No. 872/2019 before the High Court of Delhi at New Delhi. The High Court passed its final judgment and order on 29-08-2024, ruling against the Principal Commissioner of Income Tax Central 3.
The tax authority subsequently sought to challenge that High Court decision by filing a Special Leave Petition before the Supreme Court. The petition was accompanied by two condonation of delay applications, reflecting that it had not been filed within the prescribed time limit.
Core dispute
The core dispute before the Supreme Court was whether the Special Leave Petition filed by the Principal Commissioner of Income Tax Central 3 against the High Court of Delhi's order dated 29-08-2024 in ITA No. 872/2019 should be admitted and whether the High Court's decision in favour of Pernod Ricard India Private Limited warranted interference.
A threshold issue was also whether the 384-day delay in filing the Special Leave Petition should be condoned.
Court findings
The Supreme Court, comprising Justice J.B. Pardiwala and Justice Vijay Bishnoi, found that there was a gross delay of 384 days in filing the Special Leave Petition [paragraph 1].
The Court further found that this delay had not been satisfactorily explained by the petitioner [paragraph 1].
Independently of the delay, the Court found no good ground to interfere with the impugned order passed by the High Court [paragraph 2].
Outcome
The Supreme Court dismissed the Special Leave Petition on the ground of delay as well as on merits [paragraph 3]. All pending applications, including IA No. 136688/2026 and IA No. 136689/2026, were disposed of [paragraph 4]. The High Court's order dated 29-08-2024 in ITA No. 872/2019 in favour of Pernod Ricard India Private Limited therefore stands.
Major issues / areas of contention
- Whether the 384-day delay in filing the Special Leave Petition should be condoned.
- Whether the High Court of Delhi's final order dated 29-08-2024 in ITA No. 872/2019 warranted interference by the Supreme Court.