COMMISSIONER OF INCOME TAX vs. NIRUBEN KARSANBHAI PATEL

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TAXAP/1543/2006HC GujaratGJHC24038508200626 June 2008Author: HONOURABLE THE CHIEF JUSTICE Y.R.MEENA,HONOURABLE MR. JUSTICE J.C.UPADHYAYA2 pages

AI SummaryAllowed

What did the High Court hold?

The High Court held that the application for condonation of delay is allowed and the delay is condoned. The Court reasoned that the assessee was prosecuting a review application before the Income Tax Appellate Tribunal, which constituted a bona fide pursuit of a legal remedy. The time consumed in this prosecution was a genuine reason for not approaching the appellate court within the prescribed time. The Court relied on its own previous decision in Jamadar Travels Through Partner Mehmood Pritamsinh Jamadar vs. Commissioner of Income Tax III, where filing a miscellaneous application for review was considered a bona fide litigation. Therefore, the period of limitation would have to be reckoned accordingly, and sufficient cause was made out for explaining the delay. The rule was made absolute, allowing the delay to be condoned in preferring the appeal.

What were the facts?

The applicant, Shanti Enterprises, filed a Civil Application seeking condonation of delay in filing a Tax Appeal against an order of the Income Tax Appellate Tribunal (ITAT) dated 27.02.2019, which was received on 05.03.2019. The limitation period for filing the appeal expired on 03.07.2019. The applicant claimed a delay of 603 days, though stated as 250 days by the applicant. The reason for the delay was the pendency of a Miscellaneous Application (Misc. Application No. 38 of 2019) filed by the assessee on 22.04.2019 before the ITAT seeking review of its order. This review application was rejected by the ITAT on 15.12.2020, and the order was received by the applicant on 30.01.2021. The respondent is the Assistant Commissioner of Income Tax, Circle 1(2). The assessment year in question is 2012-2013.

What were the issues?

1. Whether the delay of 603 days in filing the Tax Appeal under Section 260A of the Income Tax Act, 1961, is liable to be condoned on the ground that the assessee was prosecuting a Miscellaneous Application for review before the Income Tax Appellate Tribunal? (Question of law and fact, turning on Section 260A of the Income Tax Act, 1961). Assessee's Contentions: The assessee argued that it was prosecuting another remedy bona fide by filing the review application before the ITAT. Therefore, the time elapsed in pursuing this remedy should be considered, and there was no actual delay in filing the Tax Appeal. The limitation period should be reckoned from the date of receipt of the order on the Miscellaneous Application. Revenue's Contentions: The revenue opposed the application for condonation of delay.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

C/CA/767/2021 ORDER DATED: 11/10/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/CIVIL APPLICATION NO. 767 of 2021 In F/TAX APPEAL NO. 6790 of 2021 ========================================================== SHANTI ENTERPRISES Versus ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE 1(2) ========================================================== Appearance: MR MANISH J SHAH(1320) for the Applicant(s) No. 1 MRS KALPANAK RAVAL(1046) for the Respondent(s) No. 1 ========================================================== CORAM:HONOURABLE MR. JUSTICE N.V.ANJARIA and HONOURABLE MR. JUSTICE BHARGAV D. KARIA Date : 11/10/2022

ORAL ORDER (PER : HONOURABLE MR. JUSTICE N.V.ANJARIA) Heard learned advocate Mr. Manish Shah for the applicant and learned advocate Mr. Nikunt Raval for the respondent.

This application is filed praying to condone the delay of 603 days, which is claimed to be of 250 days by the applicant assesse. This delay has occurred at the end of appellant assessee in preferring appeal against judgment and order of the Income Tax Appellate Tribunal in ITA No. 3065/Ahd/2016 for the Assessment Year 2012-2013. The order of the Tribunal was pronounced on 27.2.2019 and the same was stated to have been received on 5.3.2019. The limitation for filling the appeal expired on 3.7.2019. 3. The ground urged for explaining the delay was that against the said order of the Tribunal, the assessee had filed Misc. Application No. 38 of 2019 on 22.4.2019 seeking to review of the order. The Tribunal rejected the application on 15.12.2020 which order was received by the applicant on 30.01.2021. C/CA/767/2021 ORDER DATED: 11/10/2022

C.M. JOSHI

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