2018 (8) TMI 759 - HC - Income Tax

Condonation of delay in filing of appeal - Held that - Revenue has tried to explain the delay caused in preferring the Tax Appeal by making necessary averments in para 2 reproduced herein above. Considering the explanation it cannot be said that there was any negligence and/or lethargy on the part of the Department in not preferring the appeal within the period of limitation. Infact the papers were handed over to the standing counsel appearing on behalf of the Revenue to prefer appeals however the same was not filed. If the delay in the present appeal is not condoned and the appeal is dismissed on the ground of limitation in the case of very assessee there is likelihood of conflicting orders. Under the circumstances when the very issue / question involved in the present appeal is at large before this Court in other Tax Appeals in case of the very assessee but with respect to different assessment years we deem it fit and proper to condone the delay in the present application so that the present appeal also can be heard alongwith those Tax Appeals. - Application allowed - Delay condoned - Decided in favor of revenue.

Summary

Issues:
Delay in filing Tax Appeal against the judgment and order passed by the Income Tax Appellate Tribunal for the Assessment Year 2009-10.

Analysis:
The applicant filed an application under Section 5 of the Limitation Act to condone the delay of 480 days in filing the Tax Appeal. The delay was attributed to the mistaken belief that the appeal had been filed by the standing counsel, which was only discovered later. The applicant diligently pursued the matter and had not abandoned the cause. The Revenue explained the delay and emphasized that there was no negligence or lethargy on their part. It was noted that other appeals by the same assessee on similar issues for different assessment years were filed within the limitation period. Condoning the delay was deemed necessary to avoid conflicting orders as the issue was common in various Tax Appeals by the same assessee for different assessment years.

The Revenue requested to condone the delay to ensure that the present appeal could be heard along with other main Tax Appeals to prevent conflicting decisions. The opposing counsel argued that no sufficient cause was shown for the delay, citing a previous decision where delay was not condoned. However, the Court found that the circumstances of the current case were distinguishable from the precedent cited by the opposing counsel. After hearing both parties, the Court allowed the application, condoned the delay, and directed the notification of the main Tax Appeal for admission hearing along with connected appeals.

In conclusion, the Court granted the application to condone the delay in filing the Tax Appeal, considering the specific circumstances and the potential for conflicting decisions if the delay was not condoned. The decision aimed to ensure a fair hearing for the present appeal alongside other related Tax Appeals involving the same assessee for different assessment years.