1970 (2) TMI 46 - HC - Income Tax

Summary

Issues Involved:
1. Whether the Income-tax Appellate Tribunal has the power to condone the delay in filing a reference application under section 66(1) of the Income-tax Act, 1922.
2. Whether section 5 of the Limitation Act, 1963, applies to the reference application filed under section 66(1) of the Income-tax Act, 1922.
3. Whether the High Court can intervene under section 66(3) of the Income-tax Act, 1922, to direct the Tribunal to treat the reference application as within time.

Detailed Analysis:

1. Power of the Income-tax Appellate Tribunal to Condon Delay:
The Tribunal rejected the Commissioner of Income-tax's reference application as time-barred by one day, stating, "There is no power under the 1922 Act enabling the Tribunal to condone the delay in the filing of reference application." The High Court examined whether the Tribunal had the authority to condone such delays. The Court analyzed the provisions of the Income-tax Act, 1922, specifically sections 30, 33A(2), and 66(7A), which explicitly grant powers to condone delays in certain circumstances. The Court concluded that the absence of a general power to condone delays in the Tribunal indicates that the Tribunal does not have the authority to condone delays under section 66(1).

2. Applicability of Section 5 of the Limitation Act, 1963:
The Commissioner argued that section 5 of the Limitation Act, 1963, should apply, allowing the Tribunal to condone the delay. Section 5 states, "Any appeal or any application may be admitted after the prescribed period if the appellant or the applicant satisfies the court that he had sufficient cause for not preferring the appeal or making the application within such period." The Court noted that section 5 uses the term "the court," and it is clear that the Tribunal is not considered a court under this provision. The Court emphasized that the Tribunal's role is quasi-judicial and administrative, not judicial. Therefore, section 5 of the Limitation Act does not apply to the Tribunal.

3. High Court's Power under Section 66(3) of the Income-tax Act, 1922:
The Commissioner sought the High Court's intervention under section 66(3), which allows the High Court to require the Tribunal to treat the application as within time if the Tribunal's decision is incorrect. The High Court examined whether the Tribunal's decision to reject the application as time-barred was correct. The Court referred to precedents, including the Supreme Court's decision in Commissioner of Income-tax v. National Finance Ltd., which held that the Tribunal has no jurisdiction to extend limitation under section 5 of the Limitation Act. The Court concluded that the Tribunal's decision was correct and that the High Court has no power to condone the delay or direct the Tribunal to do so.

Conclusion:
The High Court held that the Tribunal does not have the power to condone delays under section 66(1) of the Income-tax Act, 1922, as section 5 of the Limitation Act, 1963, does not apply to the Tribunal. The High Court cannot intervene under section 66(3) to direct the Tribunal to treat the application as within time. The application was dismissed, and the rule was discharged with costs.