Williamson Financial Services Ltd. vs Commissioner of Income Tax and Another

Heard Dr. Saraf, learned senior counsel for the appellant, and Mr. U. Bhuyan, learned counsel for the respondents.

For the assessment year 1988-89 the order of assessment was passed in respect of the assessee Namdang Tea Company (India) Limited. The Revenue having by the order of assessment preferred an appeal before the Income Tax Appellate Tribunal. The appeal was barred by limitation. In paragraph 13 of the judgment delivered by the Tribunal it has been held that the explanation submitted for condonation of delay is not sufficient. The Tribunal has, therefore, dismissed the appeal as barred by time. However, after declaring the appeal to be barred by time the Tribunal has entered into the merits of the case and remanded the issue for reconsideration of the deduction claimed by the assessee u/s 80HHC of the Income Tax Act, 1961. Aggrieved by this direction given by the Tribunal the present appeal is filed.

Learned counsel for the appellant has rightly submitted that once the Tribunal has refused to condone the delay and dismissed the appeal as barred by limitation it has no jurisdiction or authority to go into the merits of the case and pass an order of remand. Once the Tribunal has arrived at the conclusion that the appeal is barred by limitation the Tribunal has no jurisdiction to entertain the appeal of the Revenue on the merits and issue any direction in regard thereto. The Tribunal having committed an error of law in remanding the matter we allow the appeal filed by the assessee and set aside the order of remand passed by the Tribunal.

In the facts and circumstances of the case there shall be no order as to costs.