2015 (9) TMI 164 - AT - Income Tax

Dismissal of Department's Application for Order Recall due to Significant Delay and Lack of Justification

The Tribunal dismissed the Department's Miscellaneous Application seeking the recall of the Tribunal order in ITA No. 793/Hyd/2007. Despite arguments ... Recall of tribunal order - Permission/approval of Competent Authority (COD) for departmental appeal - Retrospective application of subsequent judicial decision - Inordinate delay and condonation of delay in filing review/recall applicationRecall of tribunal order - Permission/approval of Competent Authority (COD) for departmental appeal - Retrospective application of subsequent judicial decision - Inordinate delay and condonation of delay in filing review/recall application - MA seeking recall of ITAT order dismissing revenue's appeal for want of COD approval was dismissed. - HELD THAT: - The Department sought recall of the Tribunal's order which had dismissed its appeal for lack of approval from the Competent Authority (COD), relying on a subsequent Supreme Court decision. The Tribunal noted that the impugned ITAT order was dated 30.9.2010 and the MA was preferred after a lapse of more than three years, filed on 28.8.2014. The Department's representative admitted that no application for COD approval had been made. Although a later Supreme Court judgment was urged as relevant, the Tribunal found no explanation for the long delay nor for the failure to seek COD permission earlier. In these circumstances the Tribunal exercised its discretion against condoning the inordinate delay and declined to recall its earlier order for fresh consideration on merits. [Paras 6, 7]MA dismissed; recall refused for want of condonation of inordinate delay and absence of prior COD approval.Final Conclusion: The Miscellaneous Application to recall the ITAT order was dismissed because the Revenue failed to obtain COD approval, offered no satisfactory explanation for the inordinate delay in seeking recall, and the application was therefore not condoned. Issues:1. Recall of Tribunal order in ITA No. 793/Hyd/2007 dated 30th September, 2010.2. Applicability of Supreme Court's decision in Electronics Corporation of India Ltd. vs. Union of India & Others on the Tribunal's order.3. Prospective effect of the Supreme Court's judgment on the present Revenue appeal.4. Timeliness of the Miscellaneous Application (MA) filed by the Department.Analysis:1. The Miscellaneous Application (MA) sought the recall of the Tribunal order in ITA No. 793/Hyd/2007 dated 30th September, 2010. The DCIT, Circle-3(2), Hyderabad filed the MA as the jurisdictional authority over the assessee, State Bank of Hyderabad. The original assessment for A.Y. 2001-02 was made under section 143(3) r.w.s. 147 of the Income-tax Act, 1961, determining the total income at Rs. 415,53,62,126. Subsequent appeals by the assessee and the Revenue led to the Tribunal's order dismissing the appeal due to lack of approval from the COD.2. The Department's DR argued for the recall of the Tribunal's order based on the Supreme Court's decision in Electronics Corporation of India Ltd. vs. Union of India & Others. The DR emphasized the need for fresh consideration and disposal of the appeal on merit. However, the counsel for the assessee contended that the Supreme Court's judgment should have only prospective effect and cannot be applied retrospectively to the Revenue appeal. The timing of the Tribunal's order and the Supreme Court's decision was highlighted as a crucial factor.3. The Tribunal considered the arguments presented by both parties. It noted the significant delay in filing the MA, more than three years after the Tribunal's order, and the absence of an application to the COD by the Department. Despite the DR's admission of not pursuing COD approval, the Tribunal found no valid explanation for the delay. The Tribunal emphasized that the inordinate delay could not be condoned and subsequently dismissed the MA filed by the Revenue.4. In conclusion, the Tribunal pronounced its decision to dismiss the MA filed by the Revenue on 13th August, 2014. The judgment highlighted the importance of timely actions and adherence to procedural requirements in legal proceedings, ultimately leading to the dismissal of the Department's application for recall of the Tribunal order.