The government on Friday proposed to allow High Courts to admit appeals against orders of the Income Tax Appellate Tribunal beyond the currently stipulated period of 120 days.
While presenting the Union budget, Pranab Mukherjee proposed to amend section 260 A of the Income Tax Act, which gives only 120 days to challenge any order of the Income Tax Appellate Tribunal (ITAT) before any division bench of a High Court.
According to the new proposal, if High Courts are satisfied that the delay was due to some reasonable cause, then they can admit the appeal.
It has been decided to amend section 260 A and section 27 A of the Wealth Tax Act, which deals with the time period of the appeal against any ITAT order, by inserting a new sub- section.
According to the proposal, the amendment will be effective retrospectively. There has been conflict between various High Courts over the issue with the Delhi High Court stating that they can admit the appeal beyond 120 days if they are satisfied. However, the High Courts of Allahabad, Bombay, Guwahati and Chhattisgarh had differed.
The minister also proposed to enhance the period for which the Income Tax Department could approach High Court against ITAT's direction. The government proposed to increase it from the mandatory period of six months.