1969 (10) TMI 10 - HC - Income Tax

Delay in filing reference applications - applicability of section 5 of the Limitation Act, 1963 - tribunal has power to condone delay

Summary

Issues Involved:
1. Applicability of Section 5 of the Limitation Act, 1963, to an application for reference made to the Income-tax Appellate Tribunal under Section 66(1) of the Indian Income-tax Act, 1922.
2. Jurisdiction and power of the Income-tax Appellate Tribunal to condone delay in filing the reference application.
3. Whether the Income-tax Appellate Tribunal is considered a "court" under the Limitation Act, 1963.

Issue-Wise Detailed Analysis:

1. Applicability of Section 5 of the Limitation Act, 1963:
The central question in the petition was whether Section 5 of the Limitation Act, 1963, applies to an application for reference made to the Income-tax Appellate Tribunal under Section 66(1) of the Indian Income-tax Act, 1922. The Commissioner prepared an application for reference within the prescribed period but due to unforeseen circumstances (heavy floods), the application reached the Tribunal after the expiration of the limitation period. The Tribunal found sufficient cause for the delay but held that it lacked the jurisdiction to condone the delay, as neither the old Act nor the Indian Limitation Act, 1908, provided for such condonation.

2. Jurisdiction and Power to Condon Delay:
The Tribunal's decision was challenged on the grounds that Section 5 of the Limitation Act, 1963, should apply by virtue of Section 29(2) of the same Act. The Commissioner argued that the Tribunal should have the power to condone the delay. However, the court concluded that Section 29(2) applies only to applications made to courts and not to other authorities. The Tribunal, being an authority other than a court, falls outside the ambit of Section 29(2), and thus, Section 5 of the Limitation Act, 1963, does not apply. Consequently, the Tribunal's decision to reject the reference application as time-barred was upheld.

3. Whether the Income-tax Appellate Tribunal is a "Court":
The court examined whether the Income-tax Appellate Tribunal could be considered a "court" under the Limitation Act, 1963. The court noted that the Tribunal is not governed by the Code of Civil Procedure but by its own rules. It has some trappings of a court but is fundamentally a judicial tribunal, not a court in the strict sense. The Tribunal's constitution, including the presence of accountant members, further indicated that it is not a court. The court referred to Supreme Court decisions and other high court judgments which consistently held that the Tribunal is not a court but a judicial tribunal exercising the judicial power of the State. Therefore, applications to the Tribunal do not fall within the scope of Section 29(2) of the Limitation Act, 1963.

Conclusion:
The court concluded that the Income-tax Appellate Tribunal is not a court and, therefore, Section 5 of the Limitation Act, 1963, does not apply to applications for reference made to it under Section 66(1) of the Indian Income-tax Act, 1922. The Tribunal's decision to reject the reference application as time-barred was correct, and the petition was dismissed with costs.