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2021 (1) TMI 252 - HC - Income TaxCondonation of delay - whether this Court should condone the delay of 342 days in preferring the Tax Appeal? - transaction of purchase and subsequent sale of the IDFC Deep Discount Bond and UPSFC - HELD THAT:- In the overall view of the matter, we have reached to the conclusion that we should give one opportunity to the applicant. The applicant is a cooperative bank and is not going to derive any personal benefit if the delay is condoned and the Tax Appeal is heard on the questions of law as proposed in the memorandum of the Tax Appeal. We should not overlook the fact that there has been some lethargy on the part of the bank in pursuing the matter. However, the lethargy is not of such a type that the delay should not be condoned. The notices under Sections 143(2) and 142(1) of the Act were issued on 14th September 2009. Ultimately, the Assessing Officer finalized the assessment treating the transaction of purchase and subsequent sale of the IDFC Deep Discount Bond and UPSFC as not in the nature of banking but as a speculation business. Ultimately, the Assessing Officer made an addition of ₹ 75,05,000=00. The appeal filed by the applicant herein before the Commissioner of Income Tax (Appeals) also came to be dismissed. Ultimately, the appeal was filed before the Tribunal, and in the absence of any counsel appearing for the applicant, the appellate tribunal dismissed the appeal in limine. We are inclined to condone the delay and hear out the Tax Appeal on merits, i.e. on the two questions of law as proposed. In the result, this application is allowed. The delay of 342 days in filing the Tax Appeal is hereby condoned.
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