2002 (12) TMI 14 - HC - Income Tax

The sole question for consideration is the date of starting of limitation for filing revision under sub-section (3) of section 264 - in my opinion, it is a case of callous negligence of the petitioner the conduct goes to show that the petitioner himself was responsible for belated filing of the revision after five years of having intimation of the passing of the assessment orders. Thus, in my opinion, the order P7 dismissing revision on the ground of limitation is in accordance with law and calls for no interference. - The petition is without merit and is dismissed

Summary

Issues:
Date of starting of limitation for filing revision under sub-section (3) of section 264 of the Income-tax Act.

Analysis:
The judgment focuses on determining the commencement of the limitation period for filing a revision under section 264 of the Income-tax Act. The petitioner received notices for depositing amounts related to assessments on January 30, 1992, without the accompanying assessment orders. The assessment orders were passed on January 13, 1992. The petitioner applied for certified copies of the assessment orders on December 8, 1993, and received them on January 6, 1997, following which a revision was filed on November 24, 1997. The Commissioner dismissed the revision as time-barred on February 23, 1998. The petitioner argued that the failure to supply the assessment order along with the demand notice led to a lack of actual knowledge, thus the revision should not be dismissed as time-barred. The Department contended that the limitation should start from the date of service of the notices, as the petitioner was deemed to have knowledge of the assessment orders through the notices served on January 30, 1992.

The relevant provision, section 264(3) of the Act, stipulates that the limitation period for filing a revision is one year from the date of communication of the order in question to the assessee or the date on which the assessee otherwise came to know of it. The notices R1, R2, and R3 informed the petitioner of the assessment orders for the relevant years, indicating that the petitioner had knowledge of the passing of the assessment orders. The petitioner's delay in applying for certified copies after receiving the demand notices in January 1992, and the subsequent delay in filing the revision until 1997, demonstrated a lack of serious pursuit of the case. The judgment concludes that the petitioner's negligence and failure to avail the benefit of the proviso for sufficient cause resulted in the belated filing of the revision, making it a case of callous negligence. Consequently, the order dismissing the revision on grounds of limitation was deemed lawful and warranted no interference.

In summary, the judgment clarifies the commencement of the limitation period for filing a revision under section 264 of the Income-tax Act, emphasizing the importance of timely action by the assessee and the implications of knowledge acquisition regarding assessment orders. The decision underscores the need for diligent pursuit of legal remedies within the prescribed timeframe and highlights the consequences of negligence in complying with statutory provisions.