COMMISSIONER OF INCOME TAX,DELHI-VI vs M/S ORIENTAL INSURANCE CO. LTD.

The Supreme Court addressed the necessity of obtaining clearance from the Committee of Disputes (COD) before filing appeals by the Department against insurance companies under the Income Tax Act, 1961. The Court upheld the High Court's ruling that mandated referral to the COD within one month, as established in Oil and Natural Gas Commission v. Collector of Central Excise (2004 (6) SCC 437). The Court clarified that while there is no rigid time limit, adherence to the COD's clearance is essential to avoid unnecessary litigation.