2024 (5) TMI 230 - HC - Income Tax

Condonation of delay of 1085 days in filing the appeal u/s 260-A - application seeking condonation of delay filed u/s 5 of the Limitation Act, 1963, the applicant/appellant contended that the appeal has to be treated as one within time from 28.06.2022, when Income Tax Appeal 2022 (8) TMI 1506 - HIMACHAL PRADESH HIGH COURT was disposed of as infructuous by this Court and also contended that the delay is neither willful nor intentional. HELD THAT - We may point out that Income 2022 (8) TMI 1506 - HIMACHAL PRADESH HIGH COURT had no doubt become infructuous in view of modification of the order challenged therein 2019 (1) TMI 421 - ITAT CHANDIGARH by the Income Tax Appellate Tribunal by passing a fresh order on 11.10.2019. The appellant had a right to question the order passed on 11.10.2019, by filing appeal under Section 260-A of the Act, within the period of 120 days prescribed under the Income Tax Act. The said period ended on 08th February, 2020. Thereafter from around 15th March, 2020 the Covid Pandemic started, and in view of the same, the Hon ble Supreme Court titled Re Cognizance for Extension of Limitation 2022 (1) TMI 385 - SC ORDER directed that the period from 15.03.2020 till 28.02.2022 would stand excluded for the purposes of limitation as may be prescribed under any general or special laws in respect of all judicial or quasi-judicial proceedings. It further stated that if limitation had expired during the period between 15.03.2020 till 28.02.2022 notwithstanding the actual balance period of limitation remaining, all persons shall have a limitation period of 90 days from 01.03.2022. In the instant case, the limitation having expired prior to 15.03.2020 on 08.02.2020 itself, the applicant cannot get the benefit of the said period of 90 days on 28.02.2022. Admittedly, the instant appeal has been preferred on 12.10.2022, 224 days after 28.02.2022. No valid explanation for this period of delay is mentioned in the application. We are also of the opinion that the date on which Income Tax Appeal No. 10/2019 was disposed of as infructuous on 28.06.2022 had no relevance, since the order impugned in that ITA and in the instant ITA would be different orders. Since we are satisfied that there has been negligence on the part of the applicant/appellant in filing the appeal within the time prescribed by law, this application is dismissed.

Summary

Issues:
Delay in filing the appeal under Section 260-A of the Income Tax Act, 1961 challenging the order passed in M.A. 99/Chd/2019 filed in ITA No. 885/Chd/2017 for the assessment year 2012-2013.

The applicant/appellant filed an application seeking condonation of delay of 1085 days in filing the appeal under Section 260-A of the Income Tax Act, 1961. The assessing officer initially passed an order under Section 143(3) of the Income Tax Act 1961, assessing the income of the respondent-assessee. An appeal was partly allowed by the Commissioner of Income Tax (Appeals), Shimla, and further, the Income Tax Appellate Tribunal granted deduction under Section 80IC to the assessee. The department filed an appeal before the High Court questioning the order modifying the deduction under Section 80IC. The appellant contended that the delay in filing the appeal was not willful or intentional, and sought condonation of delay under Section 5 of the Limitation Act, 1963. However, the Court noted that the appeal was filed 224 days after the prescribed period, and no valid explanation for the delay was provided. The Court dismissed the application and consequently, the appeal.

In a related judgment, the Court cited a previous case emphasizing the importance of diligence in prosecuting matters before the court. The judgment highlighted that negligence in filing appeals cannot be condoned merely because the Government is a party. Despite recognizing the need for a liberal approach in condoning delays, the Court found that the Department's negligence in this case was evident. The Court concluded that the Department could not take advantage of earlier decisions, and the appeal was dismissed due to the negligence on the part of the applicant/appellant in filing the appeal within the prescribed time.