SHERGARH COOP. L & C SOCIETY LTD. vs. INCOME TAX OFFICER WARD II(2) MUKTSAR

ITA/654/2009HC Punjab & HaryanaPHHC01084785200912 January 2010Author: MR. JUSTICE M.M. KUMAR,MR. JUSTICE JITENDRA CHAUHAN5 pages
AI SummaryDismissed

What were the facts?

The appellant societies (Shergarh Co-op L&C Society Ltd., Udekaran Co-op L&C Society Ltd., and Mehrajwala Co-op L&C Society Ltd.) filed appeals before the Income Tax Appellate Tribunal (Tribunal) for Assessment Year 2002-03. The Tribunal, by a common order dated 27.2.2009, dismissed these appeals on the ground of being barred by limitation. The societies then filed appeals before the High Court of Punjab and Haryana under Section 260-A of the Income-tax Act, 1961, challenging the Tribunal's order. Each appeal included an application under Section 5 of the Limitation Act, 1963, seeking condonation of a delay of 74 days in filing the appeal before the Tribunal.

What did the High Court hold?

The High Court held that the Income-tax Act, 1961, is a complete code in itself, similar to the Central Excise Act, 1944, as interpreted by the Supreme Court in Commissioner of Customs & Central Excise v. Hongo India (P) Ltd. The Court noted that the Income-tax Act makes specific provisions for condonation of delay where the legislature intends it, such as in Section 249(3). However, Section 260A(2)(a) prescribes a period of 120 days for filing an appeal to the High Court without any provision for condoning delay beyond this period by invoking Section 5 of the Limitation Act. Therefore, the reasoning in Hongo India (P) Ltd. is fully applicable. The High Court concluded that applications seeking condonation of delay under Section 5 of the Limitation Act cannot be accepted in the context of Section 260-A of the Income-tax Act. Consequently, the appeals before the High Court were dismissed as time-barred.

What were the issues?

1. Whether the delay in filing an appeal beyond the period prescribed by Section 260-A(2)(a) of the Income-tax Act, 1961, can be condoned by entertaining an application under Section 5 of the Limitation Act, 1963? (Question of law) Assessee's Contention: The assessee societies argued that the delay in filing the appeals before the Tribunal could be condoned by invoking Section 5 of the Limitation Act, 1963. Revenue's Contention: The revenue did not explicitly record any contentions in the judgment. However, the Tribunal's decision, which was upheld by the High Court, implies that the revenue likely argued that Section 5 of the Limitation Act was not applicable.

Which sections of the Income-tax Act were involved?

Section 260-A,Section 5,Section 249(3),Section 143(1)

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH. ITA No. 654 of 2009 (O&M) Date of Decision: January 12, 2010 The Shergarh Co-op L&C Society Ltd. …Appellant Versus The Income Tax Officer, Ward II(2), Muktsar …Respondent CORAM: HON'BLE MR. JUSTICE M.M. KUMAR HON’BLE MR. JUSTICE JITENDRA CHAUHAN Present: Mr. K.L. Goyal, Senior Advocate, with Mr. Manoj Rohilla, Advocate, for the appellant.

1.

To be referred to the Reporters or not? Yes

2.

Whether the judgment should be reported in the Digest? Yes M.M. KUMAR, J. This order shall dispose of ITA Nos. 654, 655 and 656 of 2009, filed under Section 260-A of the Income-tax Act, challenging common order dated 27.2.2009, passed by the Income tax Appellate Tribunal, Amritsar Bench, Amritsar (for brevity, ‘the Tribunal’) in ITA Nos. 355 to 357 (ASR) 2007 in respect of Assessment Year 2002-03, dismissing the appeals filed by the Shergarh Co-op L&C Society Ltd., the Udekaran Co-op L&C Society Ltd. and the Mehrajwala Co-op L&C Society Ltd. on the ground of being barred by limitation. The only question of law which arises for determination of this Court is as under: “Whether the delay in filing of the appeal beyond the ITA No. 654 of 2009

The order continues below.

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