2010 (5) TMI 177 - HC - Income Tax

Delay in filing of an appeal condonation of delay delay of 120 days - application under Section 5 of the Limitation Act, 1963 Held that - The reasoning adopted by Hon ble the Supreme Court in the case of Hongo India Private Limited (2009 -TMI - 32749 - SUPREME COURT) is fully applicable to the question raised in the present appeals. Therefore, we are of the view that the applications seeking condonation of delay filed under Section 5 of the Limitation Act cannot be accepted. - , the applications filed under Section 5 of the Limitation Act seeking condonation of 201 days delay in filing the appeals is dismissed.

Summary

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

Analysis:
The judgment by the Hon'ble High Court of Punjab and Haryana dealt with the issue of whether the delay in filing an appeal beyond the prescribed period of 120 days under Section 260-A(2)(a) of the Income-tax Act, 1961 could be condoned by invoking Section 5 of the Limitation Act, 1963. The Court considered ITA Nos. 171 and 173 of 2010 challenging an order by the Income tax Appellate Tribunal, Chandigarh Bench 'A'. The central question was whether the provisions of the Limitation Act could be applied in such cases. The Court referred to the Supreme Court's decision in the case of Commissioner of Customs & Central Excise v. Hongo India (P) Ltd., which held that when a special law provides for limitation regarding appeals, the provisions of the Limitation Act may not apply.

The Court analyzed the specific provisions of the Excise Act and the Income-tax Act to determine the legislative intent regarding condonation of delay. It was observed that the Act, like the Excise Act, is a complete code in itself, and where specific provisions for condonation of delay exist, no recourse to Section 5 of the Limitation Act can be taken. The Court highlighted that the Act provides for specific timeframes for filing appeals and references, and in the absence of a provision for condonation of delay beyond those periods, Section 5 of the Limitation Act cannot be invoked.

Based on the interpretation of the relevant provisions and the precedent set by the Supreme Court, the High Court concluded that the applications seeking condonation of delay under Section 5 of the Limitation Act could not be accepted. Consequently, the Court dismissed the applications for condonation of 201 days delay in filing the appeals, leading to the dismissal of the appeals themselves as time-barred. The judgment emphasized the importance of adhering to the prescribed timelines under the Act and reiterated the principle that the Act is a self-contained legislation governing the procedures and timelines for appeals.

In conclusion, the judgment by the Hon'ble High Court of Punjab and Haryana clarified the position regarding the condonation of delay in filing appeals under the Income-tax Act, emphasizing that in the absence of specific provisions allowing for such condonation, applications under Section 5 of the Limitation Act cannot be entertained. The decision underscored the need for strict adherence to the timelines prescribed under the Act and highlighted the Act's status as a comprehensive legal framework governing appeals and references in taxation matters.