2023 (6) TMI 222 - AT - Income Tax

Delay in filing the Misc. Applications by 887 days - HELD THAT - Though the Hon ble Supreme Court has extended the period of limitation till 28.02.2022, the Ld. DR could not explain the delay from 14.09.2019 till 15.03.2020 (date from which Covid-19 restrictions were imposed) and from 28.02.2022 till the filing of present Misc. Applications which is 05.08.2022. Despite the extension granted by the Hon ble Supreme Court, the Revenue has filed the Misc. Application after five months from the period of extension granted and also six months after the original order dated 14.09.2019 was passed. Therefore, the delay in present Misc. Applications cannot be condoned.

Summary

Issues involved:
The issues involved in this judgment are the filing of Miscellaneous Applications by the Revenue in relation to a common order passed by the Tribunal, condonation of delay in filing the Misc. Applications, and the power of the Tribunal to condone such delays.

Filing of Miscellaneous Applications:
The Revenue filed six Miscellaneous Applications concerning a combined order dated 14.08.2019 passed by the Tribunal, where appeals were dismissed as "withdrawn" due to low tax effect. The applications sought re-adjudication for various assessment years, with one application inadvertently mentioning the wrong assessment year. The delay in filing the applications was attributed to reasons such as administrative changes, oversight, and the impact of the Covid-19 pandemic. The applications were filed separately for each assessment year after an initial combined application was allowed only for one year.

Condonation of Delay:
The Revenue sought condonation of a delay of 887 days in filing the Misc. Applications, citing reasons including delayed receipt of the order, administrative changes, and the impact of the Covid-19 pandemic. The Revenue requested the Tribunal to condone the delay, emphasizing that it was due to circumstances beyond their control. The Applicant invoked the decision of the Hon'ble Supreme Court regarding the extension of the period of limitation.

Power of the Tribunal to Condone Delay:
The Assessee argued that the Tribunal lacked the power to condone the delay in filing the Misc. Applications as per Section 254(2) of the Income Tax Act, 1961. The Assessee contended that the reasons provided for condonation were insufficient and did not justify the delay. It was highlighted that the Misc. Applications were filed after specific steps were taken by the Tribunal during the hearing process, and approvals were granted mechanically without proper reference. The Assessee relied on legal precedents to support the argument that the Tribunal did not have the authority to condone such delays.

Judgment:
After hearing both parties and examining the record, the Tribunal noted that the delay in filing the Misc. Applications could not be condoned. Despite the extension of the limitation period by the Hon'ble Supreme Court, the Revenue filed the applications significantly later. The Tribunal found that the delay was not adequately explained and dismissed all six Misc. Applications filed by the Revenue for different assessment years.

Result:
In conclusion, all six Misc. Applications filed by the Revenue were dismissed by the Tribunal on 2nd June, 2023.