IN THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO.7904 OF 2009 (Arising out of S.L.P. (C) No.6442 of 2009)

Commissioner of Income Tax              ...Appellant(s)

Versus

M/s. Darshan Securities Private Ltd.      ...Respondent(s)

O  R  D  E  R

Heard learned counsel on both sides.

Delay condoned.

Leave granted.

In our view, this is a fit case for the High Court  

to  decide  the  matter  on  the  question  of  law  which  

basically also requires interpretation of  Explanation to  

Section 73 of the Income Tax Act, 1961.  The High Court  

has dismissed the appeal filed by the Department only on  

the  ground  of  delay.   No  doubt,  there  was  a  delay.  

However, looking to the importance of the question of law  

involved  in  this  matter  and  looking  to  the  stakes  

involved, we are of the view that the High Court should  

consider the matter for admission and thereafter decide  

the matter on merits in accordance with law.

The civil appeal stands, accordingly, allowed.

......................J.            [S.H. KAPADIA]

......................J.            [T.S. THAKUR]

New Delhi, November 30, 2009.