Allowed

Shanti Enterprises v. Assistant Commissioner of Income Tax, Circle 1(2)

Gujarat HC11 Oct 2022CA/767/2021

Case brief

AI extract

What is this about?

This oral order by the Gujarat High Court allowed the applicant to condone a delay of over 600 days in filing a Tax Appeal under section 260A of the Income Tax Act. The court held that the time spent prosecuting a review application before the Tribunal constituted a bona fide litigation and sufficient cause for the delay.

What did the court decide?

Application allowed; delay in preferring the appeal condoned; rule made absolute.

Shanti Enterprises Vs Assistant Commissioner of Income Tax… — Income Tax | Gujarat HC (2022)

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C/CA/767/2021 ORDER DATED: 11/10/2022

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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/CIVIL APPLICATION NO. 767 of 2021 In F/TAX APPEAL NO. 6790 of 2021

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SHANTI ENTERPRISES

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Versus

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ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE 1(2)

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========================================================== Appearance:

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MR MANISH J SHAH(1320) for the Applicant(s) No. 1 MRS KALPANAK RAVAL(1046) for the Respondent(s) No. 1

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==========================================================

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CORAM: HONOURABLE MR. JUSTICE N.V.ANJARIA

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and

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HONOURABLE MR. JUSTICE BHARGAV D. KARIA

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Date : 11/10/2022 ORAL ORDER

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(PER : HONOURABLE MR. JUSTICE N.V.ANJARIA)

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Heard learned advocate Mr. Manish Shah for the applicant and learned advocate Mr. Nikunt Raval for the respondent.

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This application is filed praying to condone the delay of 603 days, which is claimed to be of 250 days by the applicant assesse. This delay has occurred at the end of appellant assessee in preferring appeal against judgment and order of the Income Tax Appellate Tribunal in ITA No. 3065/Ahd/2016 for the Assessment Year 2012-2013. The order of the Tribunal was pronounced on 27.2.2019 and the same was stated to have been received on 5.3.2019. The limitation for filling the appeal expired on 3.7.2019.

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The ground urged for explaining the delay was that against the said order of the Tribunal, the assessee had filed Misc. Application No. 38 of 2019 on 22.4.2019 seeking to review of the order. The Tribunal rejected the application on 15.12.2020 which order was received by the applicant on 30.01.2021.

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Page 1 of 2

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C/CA/767/2021 ORDER DATED: 11/10/2022

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It was submitted by learned advocate for the applicant that thus the applicant was prosecuting bona fide another remedy. The time elapsed in that. It was further submitted that thus there was no delay in filling the Tax Appeal under section 260A of the Income Tax Act. It was submitted that the date of receipt of the order of the Misc. Application would have to be considered for starting point of limitation.

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While learned advocate for the respondent opposed the application, it could not be disputed that in similar set of circumstances, this court in Jamadar Travels Through Partner Mehmood Pritamsinh Jamadar vs. Commissioner of Income Tax III being Civil Application No. 902 of 2021 in Tax Appeal No. 7010 of 2021 dated 20.12.2021 observed that filling Misc. Application for review could be said to be a bona fide litigation by the party and was a genuine reason not to approach the appellate court in time.

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In the above circumstance, when the applicant assessee was prosecuting the review application before the Income Tax Appellate Tribunal and when the time was consumed in such prosecution, it was a bona fide ground in pursuing a legal remedy. The period of limitation would have to be reckoned accordingly. Sufficient cause could be said to have been made out for explaining the delay.

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Accordingly, present application is allowed. Delay is condoned in preferring the appeal. Rule is made absolute.

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(N.V.ANJARIA, J)

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(BHARGAV D. KARIA, J)

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C.M. JOSHI

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Page 2 of 2

Shanti Enterprises v. Assistant Commissioner of Income Tax, Circle 1(2)

Case brief

What is this about?

What did the court decide?

Shanti Enterprises v. Assistant Commissioner of Income Tax, Circle 1(2)

Case brief

What is this about?

What did the court decide?

What the court decided

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