High Court overturns Tribunal order due to 1305-day delay, remands for fresh decision.

The High Court set aside the order of the Income Tax Appellate Tribunal due to a delay of 1305 days in preferring the appeal. The Court remanded the matter back to the Tribunal for a fresh decision, providing the appellant with an opportunity to explain the delay. The Court emphasized that no opinion was given on the case's merits, leaving all contentions open for further consideration.

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Issues: Appeal under Section 260A of the Income Tax Act, 1961 challenging the order of the Income Tax Appellate Tribunal on grounds of being time-barred and dismissal of the condonation application for delay in preferring the appeal.

Analysis:

1. The appellant, in this case, challenged the order of the Income Tax Appellate Tribunal, Pune Bench, on the grounds of being time-barred. The Tribunal had dismissed the appeal on the basis of the delay of 1305 days in preferring the appeal, and the condonation application filed by the appellant was also rejected for lack of reasons for the delay.

2. The appellant's counsel argued that the delay was due to pursuing the remedy of rectification of the appellate order passed by the Commissioner of Income Tax (Appeals) under Section 154 of the Act. It was further explained that the appeal against the rejection of the rectification application was filed within time, but the appeal against the appellate order of the Commissioner of Income Tax (Appeals) on merit was time-barred.

3. The revenue's standing counsel supported the Tribunal's order, stating that the assessee failed to provide a satisfactory explanation for the delay. After considering the submissions, the High Court felt that justice would be served by remanding the matter back to the Tribunal for a fresh decision, allowing the appellant an opportunity to explain the delay in preferring the appeal.

4. The High Court set aside the order dated 17.3.2017 and remanded the matter back to the Tribunal for a fresh decision in accordance with the law. It was emphasized that no opinion was expressed on the merits of the case, and all contentions were kept open. The appeal was disposed of accordingly, providing a chance for a fresh hearing before the Tribunal.

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