The Supreme Court expresses concern about delays in filing of appeals by revenue.

[C.A. DEV KUMAR KOTHARI]

Limitations are well known:

Limitation  period during which any appeal or petition can be filed by an aggrieved party against order or judgment of any authority or court are specifically prescribed. Revenue, as one of biggest litigant is well aware of the same.

Revenue departments are well organized:

The revenue departments are also well equipped to meet the deadlines and therefore, there should not be delay in filing of appeal by revenue. However, delay in filing of appeal is a very regular feature as we notice from case histories. In many cases delays are of long duration and are without specific  and sustainable reasons.

Besides the organizational set-up in revenue departments, they can also take assistance of taxpayers. Many times when records or documents are not readily available with concerned departments, the officers request taxpayer to provide copy of relevant documents and taxpayer, provide the same to maintain cooperation and goodwill.

Supreme Court express  concern:

Recently the Supreme Court has expressed concern about delays in filing of appeals by revenue and that too when significant amount of revenue is involved. In case of DIT vs. Citibank N.A. 2012 (9) TMI 523 - SUPREME COURT the Supreme Court has observed on the  following lines:

1. In large number of cases, d a peculiar phenomenon of delay is found when the amount of revenue involved is high.
2. . In cases, where huge revenue/demand from the Department is involved, invariably, there is inordinate delay in filing appeals before the High Court under Section 260A of the Income Tax Act, 1961, and in filing special leave petitions before this Court.
3. We do not know the reason why such inordinate delays take place only in matters of stakes. This aspect needs to be looked into.
4. This aspect has been brought to the notice of the learned Attorney General as well as the Ministry of Law in the past. This is one such case. Even in the past, this Court has raised a similar query.
5.  For the reasons given in the Orders passed by the Supreme  Court on 2nd July, 2012, and 13th August, 2012, on account of huge delay in filing the special leave petitions as also in filing the appeal before the High Court, The court  had asked the Department to file an affidavit explaining the delay in filing the above proceedings.
6. The affidavit has been filed. But it is reiteration of the same affidavit which has been filed earlier in the High Court and the Supreme Court.
7. Further, the affidavit has not been filed by the concerned officer.
8. The amount involved in this matter is approximately Rupees ninety crores. Since the affidavit in this Court pursuant to Orders of court , as above, is not satisfactory, we want to know from the learned Additional Solicitor General as to whether the Department intends to hold a departmental inquiry for the above delay.
9.  In the above circumstances, the Court  directed  the Registry to forward a copy of the  order to the Hon’ble Finance Minister and Hon’ble Law Minister for doing the needful at the departmental level so that such cases of revenue leakages do not recur.

Thus we find that the Supreme Court has felt a need of departmental enquiry about delays in filing of appeal and SLP particularly when huge revenue is involved. taxmanagementindia.com

Recent development:

However during last about two years we have seen and observed  that many appeals filed by revenue before Tribunal and High Court are well within time or with delays of few days. The general trend of huge delay is losing and we find that now-a-days efforts are being made to file appeals in time.

Considering organization and facilities  available, time available and time allowed, computerization and standardization of forms etc.  there should not be delay in filing of appeal by revenue.

Discussions to this article

[Pradeep Khatri]

Respected Sir,

It is how Government Departments work. They don't own any responsibility.

Best Regards,

Pradeep Khatri