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Karuturi Gobal Ltd v . Dy.CIT( 2020) 116 taxmann.com 924 ( Karn) (HC)

S. 254(2): Appellate Tribunal-Rectification of mistake apparent from the record –Limitation of six months- Tribunal does not have the power to condone the delay – High court has the power to condone the delay- Tribunal is bound to dispose the appeal on merits even in the absence of the assessee or its counsel – Dismissal of appeal for prosecution is resulted in a failure of justice . [ S.144C , 254(1) , ITAT, R. 24 , Art ,226, 227 ]

The appeal of the assessee was dismissed on the ground that there was no representation by the assessee .          Assessee filed a Miscellaneous application before the Tribunal under Rule 24 of the Income tax Appellate Tribunal Rules , 1963 to recall the matter and further condone the delay of 497 days . The Tribunal dismissed the said miscellaneous application on the ground that the Tribunal did not have the power to condone the  delay beyond six months . The said was challenged by filing writ before High Court. Allowing the petition the Court held that the Tribunal was bound to dispose of the matter on merits even in the absence of the appearance of the assessee or its counsel and dismissal of the appeal for non prosecution resulted in failure of justice . Considering the same , the Court condoned the delay of 497 days by imposing cost of Rs 5000 to the assessee company . The Court set aside the order of the Tribunal and restored the proceedings to the Tribunal for fresh consideration . ( WP No. 25597 of 2019 dt 4-7 -2019 ) (AY. 2011-12 )