INCOME TAX ACT, 1961

Section 253(5)

Appeal (Tribunal) - Condonation of delay - Cross-objection filed by assessee going to the root of matter -

Assessee by way of cross-objections filed before ITAT, raised the issue of compliance or non-compliance with jurisdictional parameters necessary to initiate action under section 153C. ITAT, by a common judgment and Order, allowed appeals filed by revenue but dismissed cross-objections filed by assessees by refusing to condone delay of 48 days in filing of the same. Aggrieved by the said Order, assessee instituted appeal under section 260A. Held: Application for condonation of delay was accompanied by an affidavit and there was no necessity of filing an affidavit of a legal advisor or Chartered Accountant to the effect that they had tendered some incorrect advice to the assessees. Besides, ITAT had faulted assessee for not raising the issue of non-compliance with jurisdictional parameters, either soon after assessee received notice. Accordingly, these were not relevant considerations at the stage of deciding whether sufficient cause was shown to explain 248 days delay in instituting cross-objections. It was the case of assessee that no books of account belonging to assessee were found during search proceedings and therefore, no proceedings under section 153C could ever have been initiated against the assessees. Non-compliance with jurisdictional parameters set out under section 153C, if established, would go to the root of the matter and even nullify the very action initiated under section 153C. Accordingly, matter was remanded to ITAT for fresh consideration of appeals instituted by revenue after permitting assessee to raise the issue of non-compliance with jurisdictional parameters necessary to initiate action under section 153C.

REFERRED :

FAVOUR : Matter remanded.

A.Y. :

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