Tribunal Upholds Right of Appeal and Clarifies Law on Vested Rights

The Tribunal in I.T.R. No. 111 of 1998 held that the application for reference was not time-barred and referred questions on the jurisdiction of the Commissioner (Appeals). In I.T.R. No. 174 of 1997, the Tribunal allowed the appeal without payment of admitted tax, emphasizing the right of appeal as a substantive right vested at the initiation of proceedings. Both decisions highlighted the importance of upholding vested rights of appeal and clarified the applicability of the law pre and post April 1, 1989.

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Issues involved: Jurisdiction of the Tribunal to reconsider a question of limitation u/s 256 of the Income-tax Act, 1961; Admissibility of appeal and condonation of delay u/s 249 of the Act.

Judgment Summary:

Jurisdiction of Tribunal - I.T.R. No. 111 of 1998:
The Tribunal recalled its order on the application for reference, which was initially rejected due to a delay in filing. The Tribunal held that the application was not time-barred as it was filed within the permitted time from the date of receipt by the relevant Commissioner. The Tribunal referred questions regarding the jurisdiction of the Commissioner (Appeals) and the applicability of the law pre and post April 1, 1989.

Admissibility of Appeal - I.T.R. No. 174 of 1997:
The case involved an appeal filed without paying the admitted tax due, leading to a question of condonation of delay. The Tribunal concluded that the appeal should be entertained based on the law in place before April 1, 1989, emphasizing that the right of appeal is a substantive right vested at the initiation of proceedings, not affected by subsequent amendments. Citing legal precedents, the Tribunal ruled in favor of the assessee, highlighting that the old law supporting the right of appeal must govern its exercise.

In both cases, the Tribunal's decisions were based on the principle that a right of appeal is a substantive right vested at the initiation of proceedings, unaffected by subsequent amendments unless expressly made retrospective. The judgments clarified the applicability of the law pre and post April 1, 1989, emphasizing the importance of upholding vested rights of appeal.

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