2023 (9) TMI 484 - HC - Income Tax

Condonation of delay - delay of 879 days in filing the appeal before HC - HELD THAT - On perusal of the relevant dates we find that the delay between 4.4.2019 and 5.3.2020, the date on which the learned advocate for the department had drafted the appeal petition has not been explained, the delay of more than 110 days. Thereafter for a period of 11 months there was lockdown. Subsequently, after a period of about seven and half months the Ministry of Law had send the papers to the Income Tax Department. As stated that prior to that there was change of jurisdiction in the Income Tax Department during August, 2020 and this also contributed to the delay of another 16 and half months - the original certified copy of the order passed by the learned tribunal was misplaced. There is no explanation as to where the original certificate copy got misplaced or steps taken by the department to trace the original certified copy. As submitted assessee has made inquiry with the registry of the tribunal and they have been informed that not only the department is served with the true copy of the certified copy of the order but also the Commissioner of Income Tax Appeals as well as the assessing officer. Therefore, it is clear that the department was not diligent in taking effective steps to file the appeal. Thereafter, it appears that the department applied for a fresh certified copy of the order on 17.3.2021 after a period of six and half months and the certified copy was made ready by the registry of the tribunal on 9.4.2021. However, it took three months for the department to collect the certified copy from the registry of the tribunal and after about nearly a delay of two months the appeal was preferred on 7.9.2021. Thus, we find that there is no proper explanation given for the inordinate delay for us to exercise any discretion in favour of the appellant/revenue. Application for condonation of delay is dismissed.

Summary

Issues: Delay in filing the appeal

Analysis:
The appeal in question was filed with a delay of 879 days. The assessment for the relevant years was completed in March 2013, and the appeal before the Commissioner of Income Tax [Appeals] was allowed in March 2017. The department then appealed to the tribunal in June 2017, which was dismissed. The department received the certified copy of the tribunal's order in November 2018, with the last day for filing the appeal being April 2019. However, the appeal was filed before the High Court only in September 2021. The court noted various reasons provided for the delay, including a period of lockdown, administrative delays, and the misplacement of the original certified copy of the tribunal's order. The respondent argued that the department was not diligent in taking effective steps to file the appeal, and there was a lack of proper explanation for the delay. Consequently, the court dismissed the application for condonation of delay, leading to the rejection of the appeal. The substantial questions of law suggested by the revenue were left open for future consideration.