2017 (9) TMI 1716 - HC - Income Tax

Condonation of delay in filing an appeal before the HC - delay due to pendency of an application u/s 254(2) of rectifying mistakes apparent from the record - Held that - The time period for filing an appeal under Section 260 A of the Act does not get suspended on account of the pendency of an application before the ITAT under Section 254 (2) of the Act. In the circumstances, the question of invoking Section 14 of the LA would not arise at all. The decision relied upon by Mr. Kapoor has no application to the present case. - No satisfactory reason has been provided by the Appellant for the extraordinary delay of 439 days in the filing the appeal - Decided against the assessee.

Summary

Issues: Delay in filing appeal, invocation of Section 14 of the Limitation Act 1963, scope of Section 254(2) of the Income Tax Act 1961, justification for delay, dismissal of appeal.

In this judgment, the primary issue was the delay of 439 days in filing an appeal, with the Appellant citing pursuit of an alternate remedy as the reason. The Appellant argued that the period spent pursuing this remedy should be excluded under Section 14 of the Limitation Act 1963, referring to the decision in M.P. Steel Corporation v. Commissioner of Central Excise. However, the Court rejected this argument, stating that the application filed under Section 254(2) of the Income Tax Act 1961 was not an alternate remedy to filing an appeal under Section 260 A of the Act. The Court clarified that Section 254(2) is for rectifying mistakes apparent from the record, whereas Section 260 A allows challenging orders on substantial questions of law. The Court emphasized that the time period for filing an appeal does not get suspended due to the pendency of an application before the ITAT, thus Section 14 of the Limitation Act does not apply. The judgment highlighted that the decision cited by the Appellant was not relevant to the case.

Furthermore, the Appellant's argument that the ITAT had been rejecting applications under Section 254(2) of the Act if an appeal was filed in the High Court under Section 260 A was discussed. The Court noted that while the correctness of such rejections would need individual examination, it was not a sufficient justification for the delay in filing the appeal. Ultimately, the Court found that the Appellant failed to provide a satisfactory reason for the significant delay in filing the appeal, leading to the dismissal of the application for condonation of delay and consequently, the appeal itself. The judgment underscored the importance of timely compliance with statutory provisions and the need for valid justifications for delays in legal proceedings.