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Issues involved:
The judgment involves the interpretation of whether the provisions of section 5 of the Limitation Act are applicable to applications made under section 146 of the Income-tax Act, 1961. Summary: The High Court of Madhya Pradesh considered a reference made by the Income-tax Appellate Tribunal regarding the condonation of delay in making an application under section 146 of the Income-tax Act, 1961. The assessee, a private limited company, filed an application for reopening assessment after the prescribed time limit, seeking condonation of delay under section 5 of the Limitation Act. The Income-tax Officer rejected the request, but the Appellate Authority Commission (AAC) allowed it. The Tribunal upheld the AAC's decision, leading to the Department's appeal. The main question was whether the Tribunal was correct in applying the provisions of section 5 of the Limitation Act in the absence of a specific provision in the Income-tax Act. The Department argued that the Income-tax Act contains specific provisions for condonation of delay, and reliance was placed on relevant sections of the Act. The assessee contended that section 29(2) of the Limitation Act applies to appeals and applications under special laws unless expressly excluded. The Court analyzed the legislative intent behind the Income-tax Act and concluded that it is a complete code regarding condoning delays in applications. Referring to previous decisions, the Court held that the scheme of the Income-tax Act excludes the operation of section 5 of the Limitation Act. Therefore, the Tribunal was not justified in applying section 5 of the Limitation Act to the application filed under section 146 of the Income-tax Act. In conclusion, the Court answered the question in the negative, ruling against the assessee. Each party was directed to bear their own costs in this reference.
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