Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2012 (12) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (12) TMI 867 - HC - Income TaxDelay in filing appeal - Rejection of appeal by ITAT without going into the merits - addition made on reassessment - appeal filed before the Tribunal challenging the said order of addition by Commissioner( Appeals) & also an application for rectification u/s 154 - Held that:- The Tribunal committed an error in rejecting the assessee's appeal without examination of issues on merits. After the Commissioner dismissed the assessee's appeal by an order dated 9.1.2002, the assessee's application for rectification was substantially allowed. In such rectification application, the assessee had raised two issues pertaining to an addition of Rs.1 ,48,00,000 /- and other to Rs.43,300/-. The assessee's case with respect to addition of Rs.1 ,48,00,000 /- was allowed. The request for deleting addition of Rs.43 ,300 /- was not accepted. It was only when the Tribunal while allowing the Revenue's appeal and holding that the Commissioner erred in rectifying his own order that the Commissioner's original order dated 9.1.2002 was revived. It was therefore, only by virtue of Tribunal's order dated 31.3.2008 that the appellant's cause to challenge the Commissioner's order dated 9.1.2002 came to be revived. For the first time therefore, after rectification was allowed in favour of the assessee by the Commissioner( Appeals), he was aggrieved by the Commissioner's original order dated 9.1.2002 only when the Tribunal resorted to such an order by judgement dated 31.3.2008. Between 17.3.2003 when the Commissioner had allowed rectification application and 31.3.2008 when the Tribunal reversed such order, the assessee had no cause, no reason, no possibility of maintaining any appeal against the Commissioner's original order dated 9.1.2002. Under the circumstances, he has filed fresh appeal before the Tribunal once the entire reason for challenging the Commissioner's order changed, therefore, delay was technical in nature and well explained. Tribunal having held that Commissioner (A) should not have exercised rectification powers, had the responsibility to examine the assessee's challenge to the original order dated 9.1.2002 by which its appeal came to be dismissed by the Commissioner. The assessee only required an opportunity to challenge on merits the additions made by the Assessing Officer and confirmed by the Commissioner - appeal in favour of the appellant and against the Revenue. Order of the Tribunal is reversed. Delay caused in filing the appeal before the Tribunal stands condoned. Appeal shall be heard by the Tribunal on merits - in favour of assessee
|