2011 (5) TMI 898 - HC - Income Tax

Summary

Issues involved: Condonation of delay in filing the appeal, violation of CBDT instruction, dismissal of appeal based on tax effect less than Rs. 10 lakh.

Condonation of Delay:
The High Court of Calcutta, in the case at hand, considered an application for condonation of delay in filing the appeal. After hearing the arguments from both parties and reviewing the explanation provided in the application, the court was satisfied that the appellant had sufficient cause for the delay. Consequently, the court decided to condone the delay and proceeded to take up the appeal for consideration.

Violation of CBDT Instruction:
During the proceedings, it was brought to the court's attention that the tax effect of the appeal was less than Rs. 10 lakh, which did not fall within the exception outlined in CBDT Instruction No.3/11 dated 9th February, 2011. The court noted that the appeal had been filed in contravention of the CBDT instruction, which was binding on the appellant as per Section 268A of the Income Tax Act, 1968. As a result, the court decided to dismiss the appeal solely on the grounds of non-compliance with the CBDT instruction.

Dismissal of Appeal:
Based on the violation of the CBDT instruction, the High Court proceeded to dismiss the appeal. Consequently, the connected application also became infructuous and was disposed of accordingly. The court clarified that the dismissal was solely based on the non-compliance with the instruction and that it had not delved into the merits of the appeal. Additionally, the court directed that an urgent xerox certified copy of the order would be provided to the parties upon application and compliance with all necessary formalities.