TAX PICKINGS (PROHIBITION OF BENAMI TRANSACTIONS ACT, 1988)

It has been observed by a Division Bench of the Madras High Court that the words “date of the order” appearing in Section 46 can only be interpreted and read to mean “date of receipt of the order” for the purpose of computing the limitation for filing the appeal under Section 46 of the Act.

In this intra-court writ appeal, the Division Bench overruled the judgment passed by Single Judge Bench, wherein it had been held that if an order is passed but not communicated by the Adjudicating Authority within one year under Section 26(7) of the Act, then the Order would be barred by limitation. The Division Bench held that Section 26(7) prescribed the time for passing of the Order and communication of the Order could not be linked with the passing of the Order. The DB, inter alia, relied on Section 25 and 114 of the Indian Evidence Act, 1872 to conclude that a presumption would operate in such cases on the favor of government authorities. 

However, the Division Bench also advised the Income Tax Department to upload the orders online so as to avoid such situation. It observed as follows-

"At this juncture, it would also be more appropriate to observe that the appellants should forthwith adopt the practice of uploading the orders passed by the Adjudicating Authority as well as Appellate Authority online in a dedicated website. Such practice of uploading the orders immediately after passing of the same would obviate the situation, such as, the case on hand, and the subsequent procedural delays, after passing of the orders till the communication of the certified copies of the same to the parties, would not in any way affect the validity of the orders of the Adjudicating Authority with regard to the statutory timeline to be followed nor would there be any doubt raised or cast on the actual date of passing of the orders.".

Citations- 

1. DB Judgment- Adjudicating Authority and Another vs Anuttam Academic Institutions, [2022] 442 ITR 509 (Mad)

2. Single Judge Bench Judgment- Advance Infradevelopers Pvt. Ltd. vs Adjudicating Authority and Another, [2022] 422 ITR 477 (Mad)


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