2018 (1) TMI 278 - HC - Income Tax

Condonation of delay - Appellate Tribunal dismissing the Appeal as unadmitted in limine by declining to condone the delay caused in filing the Appeal - Held that - We direct the appellant/assessee to pay 50% of the disputed tax, which, according to the assessment order, is ₹ 11,95,591/- within a period four weeks from the date of receipt of a copy of this order. If the appellant complies with the condition, i.e. by remitting 50% of the disputed tax, then, the Tribunal is directed to condone the delay, and take the Appeal on its file, and take a decision on merits and in accordance with law. However, if the assessee fails to comply with the conditional order within the stipulated time, the benefit of this order will not enure to the assessee/appellant and this Appeal would be automatically dismissed, without further reference to this Court. On the above terms, the substantial questions of law raised in this Tax Case Appeal are answered accordingly.

Summary

Issues:
1. Delay in filing the appeal before the Income Tax Appellate Tribunal.
2. Refusal to condone the delay by the Tribunal.
3. Assessment of the conduct of the assessee during the proceedings.
4. Granting indulgence to the assessee subject to conditions.

Analysis:

Issue 1: Delay in filing the appeal before the Income Tax Appellate Tribunal
The appellant filed an appeal against the order of the Income Tax Appellate Tribunal, Chennai after a delay of 155 days. The explanation provided was that the order from the Commissioner of Income Tax (Appeals) was not brought to the appellant's notice promptly, leading to a belief that the matter was still pending. The appellant sought condonation of the delay based on this explanation.

Issue 2: Refusal to condone the delay by the Tribunal
The Tribunal dismissed the appeal as time-barred, considering the delay of 155 days. Despite the appellant's explanation, the Tribunal found the conduct of the assessee lacking and refused to condone the delay. This decision was challenged by the assessee in the present appeal.

Issue 3: Assessment of the conduct of the assessee during the proceedings
The Tribunal noted that the assessee had not cooperated with the assessment proceedings from the initial stage before the Assessing Officer. The Tribunal emphasized the importance of the appellate remedy under the Income Tax Act, highlighting the value of the right to appeal before a judicial tribunal like the Tribunal.

Issue 4: Granting indulgence to the assessee subject to conditions
The High Court recognized the significance of the appellate remedy while also considering the conduct of the assessee. Despite the delay, the Court decided to grant indulgence to the assessee under certain conditions. The assessee was directed to pay 50% of the disputed tax within four weeks. If the condition was met, the delay would be condoned, and the appeal would be considered on its merits. Failure to comply would result in automatic dismissal of the appeal.

In conclusion, the High Court disposed of the Tax Case Appeal by providing a balanced decision that acknowledged both the importance of the appellate remedy and the conduct of the assessee during the proceedings.