AIR 1977 SUPREME COURT 1348 ::1977 TAX. L. R. 685 ::1977 SCC (Tax) 208 ::1977 (1) SCC 508 ::106 ITR 653 ::(1977) 106 ITR 653 ::1977 2 SCR 460 ::1977 U P T C 491 ::(1977) 48 Taxation 129 ::48 Taxation 129

Supreme Court Of India

(From Rajasthan)

Hon'ble Judge(s): H. R. Khanna, V. R. Krishna Iyer , JJ

Income-Tax Act (11 of 1922) , S.66(1)— Reference under - High Court declining to answer reference for absence of party and non-filing of paper book - Application for rehearing - Sufficient cause - Inherent powers of High Court. (1972) 84 ITR 181 (All), Overruled. Civil P.C. (5 of 1908) , S.151— Income-Tax Act (43 of 1961) , S.256— A party or its counsel may be prevented from appearing at the hearing of a reference for a variety of reasons. In case such a party shows, subsequent to the order made by the High Court, declining to answer the reference, that there was sufficient reasons for its non-appearance, the High Court has the inherent power to recall its earlier order and dispose of the reference on merits. There is nothing in any of the provisions of the Act which, either expressly or by necessary implication, stands in the way of the High Court from passing an order for disposal of the reference on merits. The Courts have power, in the absence of any express or implied prohibition, to pass an order as may be necessary for the @page-SC1349 ends of justice or to prevent the abuse of the process of the court. To hold otherwise would result in quite a number of cases in gross miscarriage of justice.(Para 5) Thus, where a party at whose instance a reference under S. 66 (1) of the Act ....