INCOME TAX ACT, 1961

Section 253(5)

Appeal (Tribunal) - Condonation of delay - No sufficient cause - Assessee waited for the favourable decision from a higher forum on the impugned issue

Assessee filed appeal after delay of 917 days in order to claim deduction on account of education cess based on subsequent decision of Rajasthan High Court in the case of Chambal Fertilizers which was followed by various Tribunals across the country in favour of assessee. This subsequent decision of Rajasthan High Court was stated to be sufficient cause for delay in filing of appeal by the assessee in its affidavit. Held: It was not a sufficient cause which would explain delay in favour of the appeal by assessee. Assessee had merely adopted 'wait and watch' approach and had waited for the favourable decision from a higher forum on the impugned issue and allowability of deduction on account of education cess. Though, issue on merits was covered in favour of the assessee even by the decision of Jurisdictional High Court in case of Sesa Goa Ltd., but still assessee had not preferred the appeal in time. Therefore, delay in filing of appeal by assessee was not condoned and appeal of assessee was dismissed as unadmitted.

Followed: Sesa Goa Ltd. v. Jt. CIT 2020 Taxpub(DT) 1546 (Bom-HC)

REFERRED :

FAVOUR : Against the assessee.

A.Y. : 2010-11

INCOME TAX ACT, 1961

Section 92C

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