9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (2) TMI 864 - HC - Income TaxPeriod of limitation to submit/prefer the rectification application u/s 254(2) - what will be the date of commencement of the period of limitation of four years as provided under section 254(2) of the Income-tax Act ? - whether period would commence from the judgment and order passed by the Tribunal, which is sought to be reviewed or the date on which the petitioner-assessee actually received the judgment and order passed by the Tribunal, which is sought to be reviewed/rectified ? - Held that - In the present case, the Tribunal passed the judgment and order on February 20, 2007, which is sought to be rectified, which has been admittedly received by the assessee on November 19, 2008. The petitioner- assessee preferred the application on May 9, 2012, i.e., after a period of three years, six months and twenty days from the date of receipt of the judgment and order passed by the Tribunal dated February 20, 2007, however, beyond the period of four years from the actual date of the judgment and order passed by the Tribunal, i.e., February 20, 2007. Income-tax Appellate Tribunal has committed a grave error in dismissing the rectification application on the ground that the same is barred by limitation. From the date of receipt of the impugned judgment and order passed by the Tribunal, which is sought to be reviewed, it can be seen that the rectification application has been submitted within the period of four years from the date of actual receipt of the judgment and order and, therefore, it is to be held that the same is within the period of limitation as per section 254(2) of the Income-tax Act. Under the circumstances, the impugned order passed by the Income-tax Appellate Tribunal cannot be sustained.Tribunal was within the period of limitation as provided under section 254(2) of the Income-tax Act and the matter is now remanded to the Income-tax Appellate Tribunal to decide the rectification application/ miscellaneous application submitted by the petitioner-assessee in accordance with law and on its own merits. - Decided in favour of assessee.
Issues Involved:
1. Whether the period of limitation to submit a rectification application under section 254(2) of the Income-tax Act starts from the date of the order passed by the Tribunal or from the date the petitioner-assessee receives the order. Issue-wise Detailed Analysis: 1. Period of Limitation for Rectification Application: The core issue addressed in this judgment is whether the period of limitation for submitting a rectification application under section 254(2) of the Income-tax Act should commence from the date the Tribunal passes the order or from the date the petitioner-assessee receives the order. Arguments by Petitioner-Assessee: The petitioner-assessee argued that the rectification application was submitted within four years from the date of receipt of the Tribunal's order, not from the date the order was passed. The petitioner relied on several judicial precedents including: - *D. Saibaba v. Bar Council of India* where the Supreme Court held that the limitation period for filing a review petition starts from the date of communication or knowledge of the order. - *Petlad Bulakhidas Mills Co. Ltd. v. Raj Singh* where the Bombay High Court interpreted that the limitation period begins from the date the affected party has actual or constructive notice of the order. - *Sree Ayyanar Spinning and Weaving Mills Ltd. v. CIT* which reinforced the concept that the date of receipt of the order should be considered for limitation purposes. Arguments by Respondent-Revenue: The respondent-Revenue did not dispute the legal principles established by the cited cases but argued that due to the petitioner's conduct of submitting the rectification application after three years and six months from the date of receipt of the order, the court should not exercise its discretion in favor of the petitioner. Court's Analysis and Judgment: The court considered the legal precedents and the arguments presented by both parties. It emphasized that: - The period of limitation for filing a rectification application should start from the date the petitioner-assessee receives the order. - The judgment referenced *D. Saibaba v. Bar Council of India* and *Petlad Bulakhidas Mills Co. Ltd. v. Raj Singh*, highlighting that the effective date for the commencement of the limitation period is when the affected party has knowledge of the order. - The court also cited a Division Bench decision in *Vadilal Industries Ltd. v. Union of India* under the Central Excise Act, which held that the rectification application could be made within a period of six months from the date of receipt of the order. The court concluded that the Tribunal erred in dismissing the rectification application on the grounds of limitation, as it was submitted within four years from the date of receipt of the order. The court quashed the Tribunal's order and remanded the matter back to the Tribunal to decide the rectification application on its merits. Conclusion: The judgment clarified that for the purpose of section 254(2) of the Income-tax Act, the period of limitation for filing a rectification application begins from the date the petitioner-assessee receives the Tribunal's order. The Tribunal's dismissal of the rectification application on the ground of being time-barred was set aside, and the matter was remanded for a decision on merits. The court exercised its discretion under Article 226 of the Constitution of India in favor of the petitioner-assessee, ensuring that the statutory right to file a rectification application within the prescribed period is upheld.
|
