1978 (5) TMI 64 - AT - Income Tax

Summary

Issues:
1. Allowance of deduction under section 80-L for the assessment years 1973-74 and 1974-75.
2. Condonation of delay in filing appeals against the order of the Commissioner under section 263.

Detailed Analysis:
1. The appeals involved the allowance of deduction under section 80-L for the assessment years 1973-74 and 1974-75. In the initial assessment, the Income Tax Officer (ITO) allowed deductions under section 80-L as claimed by the assessee. However, the Commissioner, through an order under section 263, directed the ITO to revise the assessments by withdrawing the deductions allowed under section 80-L due to deficits computed under the head 'Other Sources'. The assessee did not appeal to the Tribunal against the Commissioner's order initially. Subsequently, the ITO, upon reconsideration, concluded that no relief under section 80-L was due. The assessee appealed to the Appellate Assistant Commissioner (AAC) contesting the withdrawal of relief under section 80-L. The AAC initially directed the allowance of relief under section 80-L. However, after a year, the AAC found a mistake apparent from the record and canceled his earlier order. The assessee then filed appeals before the Tribunal, seeking condonation of the delay in filing the appeals. The Tribunal, considering the circumstances, condoned the delay and admitted the appeals. Ultimately, the Tribunal allowed the appeals and directed the exclusion of specific amounts for each assessment year under section 80-L based on relevant legal precedents.

2. The issue of condonation of delay in filing appeals against the order of the Commissioner under section 263 was raised before the Tribunal. The Departmental Representative opposed the plea for condonation, arguing that the limitation had expired before the assessee appeared before the ITO. On the other hand, the counsel for the assessee pleaded for the condonation of delay, emphasizing the circumstances leading to the delay. The Tribunal, after considering the interpretation of the Commissioner's order, the actions of the statutory authorities, and the timing of the appeals filed by the assessee, concluded that the delay was justified for condonation. Consequently, the Tribunal admitted the appeals and proceeded to decide on the substantive issue of allowance of deduction under section 80-L for the respective assessment years, ultimately allowing the appeals in favor of the assessee.