2010 (2) TMI 210 - HC - Income Tax

Delay in filing Appeal- Whether the legislature desired to provide for condonation of delay, a specific provision has been made in the Income Tax Act, 1961, and therefore, if no such provision has been made, then no application under section 5 of the Limitation Act, 1963 could be filed as the Act itself is a complete code. Held that- dismissing the appeal, that the application seeking condonation of delay filed under section 5 of Limitation Act for appeal to the High Court under section 260A of the Act was not competent.

Summary

Issues:
Delay in filing appeal under section 260A of the Income-tax Act, 1961 and condonation of delay under section 5 of the Limitation Act, 1963.

Analysis:
The judgment delivered by the High Court dealt with an appeal challenging the order passed by the Income Appellate Tribunal regarding the assessment year 2005-06. The main issue before the court was whether the delay in filing the appeal beyond the prescribed period of 120 days under section 260A(2)(a) of the Income-tax Act could be condoned by invoking section 5 of the Limitation Act. The court referred to the Supreme Court's decision in Commissioner of Customs and Central Excise v. Hongo India (P.) Ltd. where it was held that when a special law provides for limitation, the provisions of the Limitation Act may be excluded. The court highlighted that the Income-tax Act, like the Excise Act, is a complete code with specific provisions for condonation of delay. Therefore, if the Act does not provide for condonation, no application under section 5 of the Limitation Act can be entertained.

The court examined specific provisions of the Income-tax Act, such as the unnumbered second proviso of section 143(1), section 249(3), and section 260A(2)(a), which clearly outline the timelines and conditions for filing appeals. It was emphasized that where the legislature intended to allow condonation of delay, it explicitly provided for such provisions within the Act. Drawing parallels with the Excise Act, the court concluded that the Income-tax Act functions similarly as a complete code, and thus, the provisions of the Limitation Act cannot be invoked for condonation of delay in the absence of specific provisions within the Act.

Based on the above analysis, the court dismissed the application seeking condonation of a 2-day delay in filing the appeal under section 5 of the Limitation Act. Consequently, the appeal itself was deemed time-barred and was dismissed. The judgment underscored the importance of adhering to the prescribed timelines and procedures outlined within the Income-tax Act, emphasizing that the Act's provisions must be followed strictly as it operates as a self-contained legal framework governing matters related to taxation appeals.