Power of the High Court to condone delay in filing of appeals

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A. Section 260A

ü 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 120 days from the date of the receipt of the order by the assessee or the Commissioner.

ü It is now proposed to 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 120 days, if it is satisfied that there was sufficient cause for not filing the appeal within such period.

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

ü These amendments are proposed to take effect retrospectively from 1st October 1998.

B. Section 256

ü Under section 256 of the Income-tax Act, the Income-tax Appellate Tribunal could 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.

ü 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.

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

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