2020 (5) TMI 147 - HC - Income Tax

Condoning the delay of 93 days in filing the present application - In 2019 when the appeal was on board, the same was dismissed on withdrawal in terms of Circular No.17 of 2019 dated 8th August, 2019 on the ground that the tax effect was below the prescribed monetary limit of ₹ 1 crore for the Department to file appeal in the High Court - HELD THAT - As stated that the related addition was made to the income of the assessee on the basis of information received from banking sources, Geneva, Switzerland - related appeal would be covered by the exceptions as provided in the CBDT Circular No.3 of 2018 dated 11th July, 2018. Instructions to that effect could not be communicated to learned counsel who appeared for the Revenue at that point of time which resulted in dismissal of the appeal on 3rd October, 2019 on withdrawal in terms of the CBDT Circular No.17 of 2019. After hearing learned counsel for the parties and on due consideration, we are of the view that the delay of 93 days in filing the interim application should be condoned and the order of dismissal on withdrawal dated 3rd October, 2019 should be recalled.

Summary

Issues: Delay in filing application, Recall of order dismissing appeal

Delay in filing application:
The appellant filed an interim application to condone a delay of 93 days in filing the present application and to recall the order dated 3rd October, 2019, which dismissed the related appeal. The appeal was made under Section 260A of the Income Tax Act, 1961, challenging the order passed by the Income Tax Appellate Tribunal. The appeal was dismissed due to the tax effect being below the prescribed monetary limit for the Department to file an appeal in the High Court. The appellant argued that the addition to the income was based on information from banking sources in Geneva, Switzerland, falling under exceptions provided in a CBDT Circular. The delay was attributed to the failure to communicate relevant instructions to the Revenue's counsel, leading to the dismissal of the appeal.

Recall of order dismissing appeal:
After hearing both parties, the court decided to condone the 93-day delay in filing the interim application and recalled the order of dismissal on withdrawal dated 3rd October, 2019. Consequently, the related Income Tax Appeal No. 1342 of 2018 was restored to the file, and the interim application was disposed of.