2012 (9) TMI 1150 - HC - Income Tax

Summary

Issues involved:
The appeal under s. 260A of the IT Act of 1961 against the order of the Income-tax Appellate Tribunal, Amritsar, regarding the best judgment assessment u/s 144 for asst. yr. 2005-06 was dismissed as time-barred due to a delay of 890 days not being condoned.

Judgment Details:

Issue 1: Delay in filing the appeal
The assessee-appellant filed multiple appeals against the assessment order, following legal advice. The Tribunal observed that the delay of 890 days in filing the appeal should be condoned as the appellant was pursuing remedies based on legal advice. The Tribunal relied on s. 14 of the Limitation Act, Svt. 1995, which allows exclusion of time spent on other proceedings if based on the same cause of action and prosecuted in good faith. The right of one appeal is recognized in all jurisdictions, and the matter should have been decided on merits. The application seeking condonation of delay was accepted, and the appeal was restored for a decision on merits.

Conclusion:
The High Court allowed the appeal, setting aside the order of dismissal due to the time-barred appeal. The delay of 890 days was condoned, and the appeal was restored on the Tribunal's board for a decision on merits in accordance with the law. The parties were directed to appear before the Tribunal within one month.