PCIT Vs KPC Medical College And Hospital (Supreme Court of India)
KPC Medical College and Hospital filed four appeals under Section 260A of the Income Tax Act, 1961 before the Calcutta High Court challenging a common order of the Income Tax Appellate Tribunal relating to penalty proceedings for Assessment Years 2007-08 to 2009-10 and 2011-12. Initially, three appeals (ITAT 105/2015, 107/2015 and 108/2015) were dismissed by a Division Bench on 7 August 2015 on the ground that no substantial question of law arose. However, another connected appeal arising from the same common ITAT order, ITAT 106/2015 (renumbered as ITA 21/2015), had already been admitted on 26 August 2015 on substantial questions of law concerning penalty under Section 271(1)(c). The assessee challenged the dismissal before the Supreme Court, which, by order dated 14 March 2016, granted liberty to seek review before the High Court.
Pursuant to that liberty, the assessee filed review applications with a delay of 120 days. The High Court condoned the delay, observing that it was not inordinate and noting that a connected appeal arising from the same common Tribunal order had already been admitted. Holding that dismissal of the three appeals despite the admission of the connected appeal constituted an error apparent on the face of the record, the High Court allowed the review applications, restored the appeals and directed that they be heard together with ITA 21/2015.
