2010 (4) TMI 273 - HC - Income Tax

Delay in filing of an appeal application of provisions of Limitation Act, 1963 Held that - that wherever the legislature desires to provide for condonation of delay, a specific provision has been made in the Act and, therefore, if no such provision has been made, then no application under Section 5 of the Limitation Act could be filed as the Act itself is a complete code like Excise Act, which has been considered by their Lordships of Hon ble the Supreme Court in Hongo India Private Limited. The reasoning adopted by Hon ble the Supreme Court in the case of Hongo India Private Limited is fully applicable to the question raised in the present appeal. Therefore, we are of the view that the applications seeking condonation of delay of 16 days in filing the appeals, filed under Section 5 of the Limitation Act, cannot be accepted.

Summary

Issues:
- Whether delay in filing an appeal beyond the prescribed period can be condoned by invoking Section 5 of the Limitation Act, 1963?

Analysis:

Issue 1: Delay Condonation under Income-tax Act, 1961
The High Court deliberated on the question of whether the delay in filing an appeal beyond the stipulated 120 days under Section 260-A(2)(a) of the Income-tax Act, 1961, could be excused by invoking Section 5 of the Limitation Act, 1963. The Court referred to a previous decision by the Supreme Court in the case of Commissioner of Customs & Central Excise v. Hongo India (P) Ltd., (2009) 5 SCC 791, which held that in the presence of a special law providing for limitation, the provisions of the Limitation Act may not apply. The Court emphasized that the Income-tax Act, like the Excise Act, is a complete code with specific provisions for condonation of delay. It noted that the Act does not contain any provision for condonation of delay beyond the prescribed period, similar to the Excise Act, and thus, the applications seeking condonation of a 16-day delay in filing the appeals under Section 5 of the Limitation Act were dismissed. Consequently, the appeals were also dismissed as time-barred.

Conclusion:
The judgment highlights the importance of specific provisions within the Income-tax Act for condonation of delay in filing appeals, similar to other specialized statutes. It underscores the principle that where a statute provides for a limitation period without any provision for condonation of delay, the general provisions of the Limitation Act may not be applicable. This decision serves as a precedent for interpreting the procedural aspects of filing appeals under the Income-tax Act, emphasizing adherence to statutory timelines without recourse to general delay condonation provisions.