NFAC Failed to Obey Supreme Court Order while Dismissing Charitable Trust’s Appeal: Patna HC

The Patna High Court has imposed ₹10,000 cost on the Income Tax Department, ruling that NFAC (National Faceless Appeal Centre) failed to obey a Supreme Court order while dismissing a charitable trust's appeal. This stern action highlights judicial displeasure over non-compliance with higher court directives. NFAC's dismissal, despite a Supreme Court ruling, indicates a significant procedural lapse. The cost imposition serves as a punitive measure and a reminder for tax authorities to strictly adhere to judicial pronouncements, ensuring fairness and accountability in tax administration, especially for entities like charitable trusts.