High Court allows appeal delay condonation, interpreting Income Tax Act; appeal dismissed, no substantial legal question.

The High Court of Calcutta allowed the application to condone the delay in filing the appeal due to a sufficient cause found in the affidavit. The main issue revolved around the interpretation of Section 153C of the Income Tax Act, 1961, specifically whether the Assessing Officer was justified in invoking his power under the said section. The Court, after considering relevant case law, dismissed the appeal as it found no substantial question of law arising for consideration in the case, leading to the closure of the stay application.

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Issues:
Delay in filing the appeal, Interpretation of Section 153C of the Income Tax Act, 1961.

Delay in filing the appeal:
The High Court of Calcutta considered an appeal where there was a delay of 342 days in filing the appeal. The Court examined the affidavit filed in support of the petition and found sufficient cause for the delay. Consequently, the application to condone the delay was allowed.

Interpretation of Section 153C of the Income Tax Act, 1961:
The appeal under Section 260A of the Income Tax Act was directed against an order passed by the Income Tax Appellate Tribunal. The main issue was whether the Assessing Officer was justified in invoking his power under Section 153C(1) of the Act. The Tribunal noted that the Assessing Officer received materials from the Assessing Officer of the searched person on a specific date. Based on this date, the Tribunal held that assessments for certain years could not have been subjected to assessment proceedings under Section 153C(1) of the Act. The Tribunal referred to relevant case law, including the decision in SSP Aviation Ltd. vs. Deputy Commissioner of Income Tax, to support its conclusion. The Court also considered other cases such as Commissioner of Income-tax-7 vs. RRJ Securities Ltd., Pepsi Foods (P.) Ltd vs. Asstt. CIT, and CIT vs. Gopi Apartments in reaching its decision.

In conclusion, the High Court found that there was no substantial question of law arising for consideration in the case. Therefore, the appeal was dismissed, and the stay application was also closed.

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