Limitation bars merits review after dismissal of appeal; remand on deduction claim found beyond jurisdiction

Once the Tribunal refused to condone delay and dismissed the Revenue's appeal as time-barred, it had no jurisdiction to examine the merits or direct reconsideration of the deduction claim under section 80HHC. A remand order passed after dismissal for limitation was therefore beyond authority and unsustainable. The High Court set aside the remand in favour of the assessee.

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Issues: Whether the Tribunal, after dismissing the Revenue's appeal as barred by limitation, could nevertheless enter into the merits and remand the matter for reconsideration of the deduction claimed under section 80HHC of the Income-tax Act, 1961.

Analysis: Once the Tribunal concluded that the explanation for delay was insufficient and refused to condone the delay, the appeal stood dismissed as time-barred. After such dismissal, the Tribunal had no jurisdiction or authority to examine the merits of the appeal or issue consequential directions on the substantive claim for deduction. The remand order, therefore, was made in excess of jurisdiction.

Conclusion: The remand order was unsustainable and was set aside in favour of the assessee.

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