INCOME TAX ACT, 1961

Section 254

Appeal (ITAT) - Condonation of delay in filing Rectification application - Limitation period -

Assessee preferred a miscellaneous application under section 254 and the said application came to be rejected by the Tribunal by order on the ground that the same was time-barred. Assessee had filed this Miscellaneous Application against the said Order and that with effect from from 1-6-2016 the time limit for filing application for rectifying any mistake apparent from the record was at any time within six months from the end of the month in which the order was passed. However, the assessee had filed the Miscellaneous Application beyond the time limit prescribed. There was no merit in the plea of the assessee for condonation of delay in filing Miscellaneous Application. Held: Tribunal took the view that with effect from 1-6-2016, the period of limitation, during which the rectification application can be filed, is six months. Prior to the amendment, it was four years. New law of limitation which came into force with effect from 1st June, 2016, providing for a shorter period, cannot extinguish a vested right of action. Amendment was made effective virtually in case of the assessee with retrospective effect. Though amendment does not show that it is applicable with retrospective effect, however, the existing right was extinguished with retrospective effect in case of the assessee. Registry was directed to issue fresh notice to authority for final disposal, returnable on 9-2-2021.

Relied:M.P. Steel Corporation v. CCE (2015) 7 SCC 58 : 2015 TaxPub(EX) 898 (SC), District Central Co-op. Bank Ltd. v. UOI (2017) 398 ITR 161 (MP) : 2017 TaxPub(DT) 4452 (MP-HC)Dolphin Metal (India) Ltd. v. ITO [ITA. No. 1263/AHD/2011, dt. 12-12-2014].

REFERRED :

FAVOUR : Returnable notice issued

A.Y. :

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