SLP Dismissed! Yet the JAO–FAO Controversy Refuses to Die
By now, the JAO–FAO controversy is threatening to become a tax thriller with more twists than a Bollywood courtroom drama. And the Supreme Court seems to be playing its own part in keeping the suspense alive.
Here’s the latest episode:
Earlier this week, the Apex Court dismissed yet another Revenue SLP (Special Leave Petition) in this much-talked-about controversy. The case arose from a Bombay High Court ruling, which had followed the famous Hexaware judgment. The Revenue, as always, wasn’t happy, and marched up to the Supreme Court with its appeal. But Justice J.B. Pardiwala’s Bench sent them back empty-handed – dismissing the SLP both on delay and on merits.
Interestingly, this isn’t the first time. Just a few weeks ago, the same Bench had dismissed a similar SLP from the Revenue. That rejection is now being contested by the Department through a Miscellaneous Application, urging the Court to “restore” the appeal and club it with the 700-odd Revenue appeals already pending before another Bench headed by Justice B.V. Nagarathna.
So where does this leave the taxpayer?
Well, in limbo. On one hand, High Courts have consistently ruled in favour of taxpayers on the JAO–FAO issue, strengthening the confidence of assessees. On the other hand, the Revenue is fiercely fighting back, dragging nearly 700 cases to the Supreme Court. And now, with two different SC benches dismissing SLPs while a larger batch awaits a final hearing before another Bench, the fate of the controversy hangs somewhere in between.
The bigger takeaway?
The Supreme Court’s approach shows two trends:
1. SLP dismissals are not precedents.Just because an SLP is dismissed doesn’t mean the issue is settled once and for all. It only means the SC wasn’t convinced enough in that particular case.
2. The final word is still pending.With 700 cases tagged together, the ultimate ruling will likely come from the Nagarathna Bench. Until then, taxpayers and professionals will have to live with the uncertainty.
Why does this matter so much?
The JAO–FAO controversy isn’t just about technical wording. It has far-reaching consequences for assessments, jurisdiction, and the validity of tax proceedings across India. If taxpayers win, it could invalidate several assessments. If the Revenue wins, it could revive many cases previously believed to be settled.
In short:
• The Revenue keeps appealing,
• The Supreme Court keeps dismissing (sometimes),
• The big Bench keeps waiting,
• And taxpayers keep wondering: Is this the end of the controversy, or just another intermission?
Until Justice Nagarathna’s Bench gives a conclusive ruling, the JAO–FAO saga remains a nail-biter. For now, the latest dismissal gives taxpayers some reason to smile, while the Revenue continues its uphill battle.
