2024 (1) TMI 804 - SCH - Income Tax

Condonation of delay filling appeal - Connection usage charges paid to Foreign Telecom Operator(s) - 'Royalty' OR 'Fees' for Technical Services - HC dismissed appeal as there was a gross delay of four years and hundred days in preferring the appeals u/s 260A - High Court, not being satisfied with the explanation offered dismissed the appeals, out of which this special leave petition(s) arises - HELD THAT - What we find curious is that the Department instead of seeking to ascertain the reasons for there being over four years delay in filing the appeals u/s 260A of the Act has simply sought to get the imprimatur of this Court on the impugned order of the High Court. Although following the other special leave petitions which have been dismissed by this Court as they arise from the same common impugned order, we may have to dismiss this SLP(s), we nevertheless direct that the concerned authority to file an affidavit before this Court explaining as to what inquiry has been made or action has been taken vis-a-vis the gross delay of four years and hundred days in filing the appeals before the High Court. The said affidavit shall be filed within a period of three weeks from today. Prima facie this special leave petition(s) may also have to meet the same fate, as other cases dismissed by this Court but however, pending passing of such an order, we direct the concerned officer to file an affidavit within a period of three weeks from today.

Summary

Issues involved:
The judgment deals with the condonation of delay in filing a special leave petition under Section 260A of the Income Tax Act, the dismissal of appeals by the High Court due to a significant delay, and the directive for the concerned authority to explain the reasons for the delay.

The Supreme Court noted a delay of 175 days in filing the special leave petition, which was condoned. The impugned order by the Division Bench of the High Court dismissed appeals due to a gross delay of four years and hundred days in preferring the appeals under Section 260A of the Income Tax Act. The High Court's dissatisfaction with the explanation led to the dismissal of the appeals, giving rise to the special leave petition(s).

Three other special leave petitions arising from the same common order faced a similar fate of dismissal by the High Court due to a delay of over four years in filing the appeals under Section 260A of the Act. The Court expressed curiosity over the Department's lack of effort to ascertain the reasons for the delay and instead seeking approval for the impugned order. Despite the likelihood of dismissal, the Court directed the concerned authority to file an affidavit explaining the inquiry or action taken regarding the significant delay in filing the appeals before the High Court.

While acknowledging that the special leave petition(s) may face a similar outcome as the other dismissed cases, the Court required the concerned officer to submit an affidavit within three weeks. The Court scheduled a further hearing on 06.02.2024 to address the matter.