INCOME TAX ACT, 1961

Section 253(5)

Appeal (tribunal) - Condonation of delay - No sufficient cause - Conscious decision by assessee to not file appeal rather to file cross-objection

Assessee-company filed appeal beyond the time prescribed under section 253(3). erstwhile Director of the company. For the reasons of delay, director of assessee company submitted that he was advised that Department might file an appeal against relief allowed by CIT(A) and the company could then file a Cross Objection within 30 days of receipt of the grounds of appeal of Department. However, Department did not file appeal against order of CIT(A) and the company lost sight of filing an appeal to the Tribunal, after a considerable delay when it was realised that department had not filed appeal, the company immediately took the matter to the Tribunal; however, after a delay of 325 days.Held: It was obvious that there was a conscious decision for not filing of appeal within the time prescribed under section 253(3). Admittedly, it was consciously decided at assessee's end, to not file appeal, and to instead file the Cross Objection, if appeal was filed by revenue. A conscious decision by assessee to not file appeal, could not take character of sufficient cause within the meaning of section 253(5). There were also no details as to whether any action was taken by assessee against the person who had given such a useless advice because any knowledgeable professional, well-versed and experienced in law, could not ever justify or rationalise the advice to not file appeal, and to instead file Cross Objection if Revenue filed appeal. Accordingly, appeal was dismissed as barred by limitation.

REFERRED :

FAVOUR : Against the assessee.

A.Y. : 2009-10

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