The Bombay High Court has held that the limitation period for filing the income tax appeal began from the date of receipt of ITAT (Income Tax Appellate Tribunal) order by the aggrieved party, not pronouncement date.
The bench of Justice G.S. Kulkarni and Justice Dr. Neela Gokhale observed that the mere knowledge of the pronouncement is not sufficient file the appeal but requires the copy of the order is necessary.
According to the court, the Income Tax Act or rules does not mention about applying certified copy of order. Therefore, the limitation period starts from the day on which the dispatched order is received by the respective party.
GS Strategic Investments Limited, the appellant sought to condone delay of 88 days. The appellant was challenging the decision of ITAT remanding the issue of long term capital gain back to the department.
There was a delay of 88 days. The assessee submitted that it had received the signed copy of the ITAT order on February 27, 2025 and the limitation period expired on June 27, 2025. However, the appeal was filed on 23rd September 2025 with a delay of 88 days.
The court examined Section 254(3) of the Income Tax Act, 1961, Rules 35 and 49 of Income-Tax (Appellate Tribunal) Rules, 1963.
As per Section 254(3), the order of the appeal will be sent to the assessee and to the Principal Commissioner or Commissioner. The court observed that this shows that once the order is pronounced by the ITAT, the copy of the order will be sent to the assesee and the income tax department.
The bench opined that, in order to challenge the decision of the appellate tribunal, the aggrieved party must required the complete copy of the Judgment and Order. This helps the party to note the reasons and findings of the appellate tribunal.
“In these circumstances, we are of the view that the limitation shall commence from the day on which a copy of the Judgment and Order passed by the ITAT, is received by the aggrieved party” held the court.
In the present case, the counsel for the petitioner submitted an envelope with the appeal papers. The envelope showed that ITAT had dispatched the order on February 25, 2025 and the petitioner received the copy on 27th February 2025. Thus, the court accepted the 27th February as date which limitation period starts.
Considering the submissions, the high court condoned the delay of 88 days, clarifying that the limitation period starts from the date of receipt of appellate order by the aggrieved party.
