Budget 2010: Power of the High Court to condone delay in filing of appeals

Feb 28, 2010

A. The existing provisions of section 260A(2) provide that
 an appeal against the order of Income-tax Appellate
Tribunal can be filed before the High Court within a
period of one hundred and twenty days from the date
of the receipt of the order by the assessee or the
 Commissioner.Sub-section (7) of section 260A of
the Income-tax Act provides that the provisions of
 Code of Civil Procedure, 1908 (5 of 1908) shall,
as far as may be, apply in the case of an appeal
filed under this section before the High Court.


The Delhi High Court, while interpreting provisions of
 section 260A, has held that the High Court has the power
to condone delay in filing of an appeal. However, Allahabad,
 Bombay, Kolkata, Guwahati and Chattisgarh High Courts
have held otherwise.

It is, therefore, proposed to retrospectively insert
sub-section (2A) in section 260A of the Income-tax Act
to specifically provide that the High Court may admit
an appeal after the expiry of the period of one hundred
 and twenty days, if it is satisfied that there was sufficient
 cause for not filing the appeal within such period.

Consequential amendments on similar lines are proposed to be
 made in section 27A of the Wealth-tax Act. These amendments
are proposed to take effect retrospectively from 1st October, 1998.


B. Under section 256 of the Income-tax Act, the Income-tax Appellate
Tribunal could to refer a case to the High Court. In case where
the Income-tax Appellate Tribunal refused to refer a case to
 the High Court, the assessee or the Commissioner were allowed
 to file an appeal before the High Court against such refusal of
the Tribunal within a period of six months from the date on which
 he was served with an order of refusal.

It is proposed to retrospectively insert sub-section (2A)
in section 256 so as to empower the High Court to admit an
 application after the expiry of the period of six months,
if it is satisfied that there was sufficient cause for not
 filing the same within such period.

Consequential amendments on similar lines are also proposed
to be made in section 27 of the Wealth-tax Act.

These amendments are proposed to take effect retrospectively
 from 1st June, 1981.