2019 (2) TMI 1216 - SC - Income Tax

Condonation of delay of 290 days - HELD THAT - In the present case a self-operating order was passed by the Prothonotary, High Court, Bombay as a result of which Income Tax Appeal (Lodging) stood dismissed for nonprosecution. Notice of motion seeking condonation of delay of 290 days in curing the defects was later rejected by the High Court by its order dated 22.03.2018, which is presently under challenge. All other matters also stood dismissed for same reason. This Court had passed an order on 13.11.2018 seeking an affidavit from the Department as to who were responsible in the matter for not curing the defects in time. An affidavit has now been filed by Deputy Director of Income Tax, Directorate of Legal and Research, New Delhi,

Summary

Issues:
1. Dismissal of Income Tax Appeal for nonprosecution.
2. Rejection of notice of motion seeking condonation of delay.
3. Responsibility for delay in curing defects.
4. Communication failure leading to dismissal of appeals.
5. Termination of services of Standing Counsel.

Analysis:
1. The judgment deals with a self-operating order passed by the Prothonotary, High Court, resulting in the dismissal of Income Tax Appeal (Lodging) No.1481/2016 for nonprosecution on 12.01.2017. Subsequently, a notice of motion seeking condonation of delay of 290 days to cure the defects was rejected by the High Court on 22.03.2018, which is being challenged. Other matters faced similar dismissals due to the same reason.

2. Following the dismissal, the Court sought an affidavit from the Department to identify those responsible for the delay in curing the defects. The Deputy Director of Income Tax, Directorate of Legal and Research, New Delhi, submitted an affidavit explaining the situation. The affidavit highlighted that Assessing Officers were not informed of the objections raised by the Prothonotary and Senior Master, leading to delays. The Standing Counsel attributed the non-communication of defects to her clerk, who orally intimated the objections to the officers. Consequently, the Department ceased assigning work to the Standing Counsel and terminated her services immediately, with the directive to recover any professional fee paid for the dismissed appeals.

3. In light of the submissions made, the Court issued notices in all special leave petitions and applications for condonation of delay, returnable on 29.03.2019. The termination of the Standing Counsel's services and the steps taken to rectify the situation reflect the gravity of the communication failure and its impact on the appeals process.