2026 (8) TMI 568

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....t gives rise to a compelling, clear-cut, and undiluted Substantial Question of Law. Without such a foundational question, the doors of this court remain firmly bolted. While internal administrative circulars concerning monetary ceilings, such as those issued by the Central Board of Direct Taxes under Section 268A, restrict the Revenue from litigating minor tax effects, they do not bind an assessee. However, an assessee, irrespective of tax effect boundaries, must clear the mandatory test of law that the appeal must present a substantial question of law. If that core requirement is missing, the appeal must fail at the threshold. 2. The present litigation stems from Assessment Year 2018-19. The appellant, carrying on a proprietorship conce....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....en vehicular accident, and dismissed the appeal in limine on limitation grounds, noting: "The facts in the present case clearly show that the assessee had admittedly not met with an accident but he is having swelling in his left arm... The reasons given by the assessee clearly do not explain the delay... The delay in filing the appeal is not condoned and the appeal of the assessee stands dismissed in limine." 5. Dissatisfied with the refusal to condone the delay, the appellant has knocked on the doors of this Court via the instant appeal. II. DISCUSSION ON SUBSTANTIAL QUESTIONS OF LAW & ADMISSIBILITY UNDER SECTION 260A 6. We have meticulously examined the Memorandum of Appeal, heard the learned counsel for the appellant at....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....versity of such magnitude as to transform a factual dispute into a question of law. 10. To cross the threshold of Section 260A, the question proposed must be debatable, novel, and have a direct bearing on the interpretation or application of a statutory provision. Because the questions raised here are entirely rooted in a re-appraisal of facts, they fail to qualify as Substantial Questions of Law. III. CONCLUSION 11. To sum up, while the fiscal boundaries concerning tax effects apply as a restraint solely against the Revenue, the foundational prerequisite of demonstrating a substantial question of law applies universally to every appellant invoking Section 260A of the Income Tax Act, 1961. The present memorandum of appeal cuts no i....