2019 (12) TMI 821 - AT - Income Tax

Delay in filing Miscellaneous Application - Miscellaneous Application filed belatedly with a delay of 546 days - HELD THAT - When there is no provision of condonation of delay for filing of the Miscellaneous Application, then the Miscellaneous Application filed belatedly is not maintainable being barred by limitation provided under section 254(2) of the Act and accordingly the same is dismissed.

Issues Involved:
1. Delay in filing the Miscellaneous Petition.
2. Service of notice and communication to the assessee.
3. Jurisdiction and power of the Tribunal to condone delay.
4. Applicability of Section 254(2) of the Income Tax Act.
5. Precedents and consistency in Tribunal decisions.
6. Legal principles on limitation and rectification of mistakes.

Detailed Analysis:

1. Delay in Filing the Miscellaneous Petition:
The assessee filed the Miscellaneous Petition under Section 254(2) of the Income Tax Act with a delay of 546 days. The original order was passed on 02.06.2017, and the petition was filed on 01.07.2019. The Tribunal noted that the limitation for rectification of a mistake is six months from the end of the month in which the order is passed. Therefore, the petition was not maintainable due to the delay.

2. Service of Notice and Communication to the Assessee:
The assessee claimed that he was not served any notice for the hearing by the Tribunal and came to know about the ex-parte decision through the Income Tax Office. However, the Tribunal's records showed that the notice for the hearing was sent on 21.04.2017 to the address provided by the assessee. The order dated 02.06.2017 was also sent via registered AD on 04.07.2017 and was not returned unserved. Thus, the Tribunal concluded that the assessee had received the order.

3. Jurisdiction and Power of the Tribunal to Condon Delay:
The Tribunal emphasized that it has no jurisdiction or power to condone the delay in filing the Miscellaneous Application as per Section 254(2) of the Income Tax Act. The provision does not allow for condonation of delay, and this position has been consistently upheld by various Benches of the Tribunal.

4. Applicability of Section 254(2) of the Income Tax Act:
Section 254(2) was amended by the Finance Act, 2016, reducing the limitation period for rectification of mistakes from four years to six months. The Tribunal referred to the case of Shri Vinod Kumar Singh vs. ITO, where it was held that the limitation period of six months applies from the end of the month in which the order was passed. The Tribunal also cited the decision in ITO vs. Shri Ram Ratan Modi, which reinforced that the amendment is not retrospective and applies from 01.06.2016.

5. Precedents and Consistency in Tribunal Decisions:
The Tribunal referred to several precedents, including the decisions of the Bangalore Benches in Smt. Padma K. Bhat vs. ACIT and the Hon’ble Bombay High Court in Bharat Petroleum Corpn. Ltd. v. ITAT, to support its stance on the non-maintainability of the petition due to the time-barred limitation. These cases highlighted that the Tribunal cannot condone delays beyond the statutory period prescribed under Section 254(2).

6. Legal Principles on Limitation and Rectification of Mistakes:
The Tribunal reiterated that the rectification of mistakes must be sought within the specified limitation period. It emphasized that the absence of a provision for condonation of delay in the Income Tax Act means that the Tribunal must adhere strictly to the statutory timelines. The Tribunal also noted that any amendment to the limitation period should not retrospectively extinguish the rights of the parties.

Conclusion:
The Tribunal dismissed the Miscellaneous Application filed by the assessee as it was barred by limitation. The Tribunal upheld that there is no provision for condonation of delay under Section 254(2) of the Income Tax Act, and consistent with previous decisions, the application was not maintainable. The order was pronounced in the open Court on 09/12/2019.

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