The Tax Publishers2021 TaxPub(DT) 0189 (Guj-HC) : (2021) 431 ITR 0071

INCOME TAX ACT, 1961

Section 260A

Where assessee was a cooperative bank and was not going to derive any personal benefit if the delay is condoned and it should not be overlooked that there was some lethargy on the part of the bank in pursuing the matter, however, the lethargy is not of such a type that delay should not be condoned, since AO finalized the assessment treating the transaction of purchase and subsequent sale of Deep Discount Bond and UPSFC as not in the nature of banking but as a speculation business, therefore, delay of 342 days in filing appeal was condoned.

Appeal (High Court) - Delay in filing the appeal by 342 days - Condonation of -

Assessee had filed this application for condonation of delay of 342 days. This Civil Application was being moved for condonation of delay in filing tax appeal challenging the order passed by Tribunal. The period of limitation for filing the appeal before this Court under the provisions of section 260A(2)(a) is 120 days from the date of communication of the order appealed against. Thus, there was delay of 342 days in filing the said tax appeal. Held: Assessee was a cooperative bank and was not going to derive any personal benefit if the delay is condoned and the Tax Appeal was heard on the questions of law as proposed in memorandum of the Tax Appeal. It should not be overlooked that there was some lethargy on the part of the bank in pursuing the matter. However, the lethargy is not of such a type that the delay should not be condoned. AO finalized assessment treating the transaction of purchase and subsequent sale of Deep Discount Bond and UPSFC as not in the nature of banking but as a speculation business. Therefore, delay of 342 days in filing the Tax Appeal was condoned.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2007-08



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