2011 (9) TMI 575 - HC - Income Tax

Delay in filing appeal by 1830 days and 735 days - Tribunal without going through merit decided against assessee on account of delay - Assessee filed appeal before High Court - Held That - Appeal before High Court can be filed against substantial question of law - orders passed by the Tribunal in the delay condonation petitions under section 253(5) of the Act cannot be appealed against to the High Court - Appeal is not maintainable but assessee can file writ.

Summary

Issues:
1. Appeal against orders of the Income Tax Appellate Tribunal declining to condone delay.
2. Maintainability of the appeal before the High Court under section 260A of the Income-tax Act.
3. Interpretation of relevant sections 253, 254, and 260A of the Act.
4. Jurisdiction of the High Court under Articles 226 and 227 of the Constitution.

Analysis:

1. The judgment deals with income tax appeals filed against the orders of the Income Tax Appellate Tribunal rejecting the appeals due to significant delays in filing. The Tribunal dismissed the appeals without hearing the delay condonation petitions, leading to the dismissal of the Income Tax Appeals based on the delay. The appellant challenged the orders declining to condone the delay by filing these appeals.

2. The Court first examined the maintainability of the appeals before the High Court under section 260A of the Income-tax Act. Section 260A(1) allows an appeal to the High Court from every order passed in appeal by the Appellate Tribunal if the case involves a substantial question of law. The Court analyzed that the order on a delay condonation petition is not an order in appeal since the appeal itself is not admitted until the delay is condoned. Therefore, the Court questioned the maintainability of the appeals based on this interpretation.

3. The judgment delves into the provisions of sections 253 and 254 of the Act. Section 253(5) empowers the Tribunal to admit an appeal after the expiry of the relevant period if there was sufficient cause for the delay. The Tribunal can pass orders on appeals only after admitting them, either in time or after condoning the delay. Section 254(1) outlines the procedure for the Tribunal to pass orders on admitted appeals after hearing both parties.

4. The Court concluded that only orders passed by the Tribunal in the appeal under section 254(1) are appealable to the High Court under section 260A(1). Orders on delay condonation petitions under section 253(5) cannot be appealed under this provision. Despite dismissing the appeals as not maintainable under section 260A, the Court suggested that aggrieved parties could potentially seek relief through the High Court's jurisdiction under Articles 226 and 227 of the Constitution in suitable cases.

In essence, the judgment clarifies the limitations on appealing orders of the Tribunal declining to condone delay, emphasizing the procedural aspects and the specific provisions of the Income-tax Act governing the admission and disposal of appeals.