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18 Jun 2014

Limitation period for filing appeal to be computed from the date of Corrigendum order, instead of original order

Recently in the case of Fast Track Tour & Travels v. Union of India (2014) 45 taxmann.com 263 (Jharkhand), the Honorable Jharkhand High Court held that if vide corrigendum order, the liability of assessee is substantially altered, period of limitation for filing of appeal must be counted from the date of service of corrigendum.

In the cited case, an order in original was issued upon the assessee on 1-10-2010 and a corrigendum order substantially increasing assessee’s liability was passed on 13-12-2010 and served on the assessee on 22-12-2010. The assessee, aggrieved by the order, filed an appeal on 22-06-2011 which was dismissed by the appellate authority on the grounds that it was filed beyond the maximum extended time limit for filing such appeal as mentioned in Section 85 of Finance Act, 1994 and hence was declared time barred. The authority calculated such extended period from the date of issue of order in original i.e. 01-10-2010 and therefore concluded that appeal was filed after an inordinate delay, however the honorable High Court observed that if a corrigendum order has been issued which substantially increase the liability of the assessee, then the date when such order was received by the assessee will be considered for calculation of time limit for filing of appeal, instead of the date of receipt of order in original.