1.  RAM JETHMALANI & ORS. Vs. UNION OF INDIA & ORS., WRIT PETITION (CIVIL) NO(s). 176 OF 2009, Dated : 4th July 2011, SUPREME COURT OF INDIA

Pursuant to a Writ Petition alleging inaction by the Government on the unearthing of unaccounted money, the Supreme Court set up a High Level Committee to act as a Special Investigation Team to supervise the investigation by the Government into black money. In the course of the ruling, the Court considered the impact of the Double taxation Avoidance Agreements, the Vienna Convention and the judgment in UOI vs. Azadi Bachao Andolan 263 ITR 706 (SC). The Court strongly disapproved of the stand taken by the Government that the names of the tax evaders was a “secret” and could not be revealed under the India-Germany DTAA.

(Please click here for judgment)

2.  Commissioner of Income Tax Vs. Goyal M.G. Gases Pvt. Ltd, I.T.A. No.335/2011, Date of Decision: 23.02.2011, High Court of Delhi

This Court categorically held that even if there is no period of limitation prescribed u/s153 (3)(ii) to give effect to s. 263 orders, the AO is required to pass the order within a “reasonable period”. Non-specification of period of limitation does not mean that the AO can wait for indefinite period before passing the consequential order. On facts, the period of 3 years & 8 months that had elapsed since the passing of the s. 263 order was “certainly much beyond the reasonable period that can be allowed to the AO to pass the consequential order“. As the s. 263 order was rightly held to be infructuous, the effect order passed thereafter is not valid.