Limitation Period can’t start from the date pronouncement of Order, if assessee lack knowledge: Delhi High Court [Read Judgment]

Limitation Period - pronouncement of Order - assessee lack knowledge - Delhi High Court - Taxscan

The Delhi High Court held that the limitation period cannot start from the date pronouncement of the Order if the assessee lacks knowledge about the pronouncement of the order.

The appellant-assessee, Pacific Projects Limited has changed its address and shifted to the new address w.e.f. 15th November 2008 and this fact had been mentioned in the appeal filed by the assessee in Form No. 35 against the order dated 2nd December 2018 passed by the DCIT.

The address of the appellant mentioned in the appeal before the ITAT by the respondent authority was its former address and not the new address, which had been mentioned in the appeal filed by the petitioner before the Commissioner, Income Tax (Appellate) in form No. 35.

Mr. Salil Kapoor, the Counsel for the petitioner urged that the petitioner was never served in the appeal filed by the Department before the ITAT.

The ITAT in its order held that it had no power to condone the delay in filing the application under Section 254(2) as the petitioner had filed the miscellaneous application after six months from the end of the month in which the impugned order had been passed.

The division bench of Justice Sanjeev Narula and Justice Manmohan held that ITAT has erroneously concluded that the miscellaneous application filed by the petitioner was barred by limitation under Section 254(2) of the Act inasmuch as the petitioner had filed the miscellaneous application within six months of actual receipt of the order.

“If the petitioner/assessee had no notice and no knowledge of the order passed by the ITAT, it cannot be said that the limitation would start from the date the order was pronounced by the Tribunal,” the division bench said.

Subscribe Taxscan Premium to view the Judgment

Support our journalism by subscribing to Taxscan AdFree. We welcome your comments at info@taxscan.in

taxscan-loader