2018 (1) TMI 278 - HC - Income Tax

High Court grants indulgence in Tax Case Appeal despite delay; condition to pay 50% disputed tax within 4 weeks

Cherraan Properties Ltd. Versus The Assistant Commissioner of Income Tax

Cherraan Properties Ltd. Versus The Assistant Commissioner of Income Tax - TMI Issues:1. Delay in filing the appeal before the Income Tax Appellate Tribunal.2. Refusal to condone the delay by the Tribunal.3. Assessment of the conduct of the assessee during the proceedings.4. Granting indulgence to the assessee subject to conditions.Analysis:Issue 1: Delay in filing the appeal before the Income Tax Appellate TribunalThe appellant filed an appeal against the order of the Income Tax Appellate Tribunal, Chennai after a delay of 155 days. The explanation provided was that the order from the Commissioner of Income Tax (Appeals) was not brought to the appellant's notice promptly, leading to a belief that the matter was still pending. The appellant sought condonation of the delay based on this explanation.Issue 2: Refusal to condone the delay by the TribunalThe Tribunal dismissed the appeal as time-barred, considering the delay of 155 days. Despite the appellant's explanation, the Tribunal found the conduct of the assessee lacking and refused to condone the delay. This decision was challenged by the assessee in the present appeal.Issue 3: Assessment of the conduct of the assessee during the proceedingsThe Tribunal noted that the assessee had not cooperated with the assessment proceedings from the initial stage before the Assessing Officer. The Tribunal emphasized the importance of the appellate remedy under the Income Tax Act, highlighting the value of the right to appeal before a judicial tribunal like the Tribunal.Issue 4: Granting indulgence to the assessee subject to conditionsThe High Court recognized the significance of the appellate remedy while also considering the conduct of the assessee. Despite the delay, the Court decided to grant indulgence to the assessee under certain conditions. The assessee was directed to pay 50% of the disputed tax within four weeks. If the condition was met, the delay would be condoned, and the appeal would be considered on its merits. Failure to comply would result in automatic dismissal of the appeal.In conclusion, the High Court disposed of the Tax Case Appeal by providing a balanced decision that acknowledged both the importance of the appellate remedy and the conduct of the assessee during the proceedings.