2018 (3) TMI 531 - HC - Income Tax

Condonation of delay - period of limitation provided - Held that - It is for the general benefit of the entire community so as to ensure that stale and old matters are not agitated and the party who is aggrieved by an order can expeditiously move higher forum to challenge the same, if he is aggrieved by it. As observed by the Apex Court in many cases, the law assist those who are vigilant and not those who sleep over their rights as found in the Maxim Vigilantibus Non Dormientibus Jura Subveniunt . Therefore, merely because the Respondent does not appear, it cannot follow that the applicant is bestowed with a right to the delay being condoned. We are conscious of the fact that the period of limitation should not come as an hindrance to do substantial justice between the parties. A party cannot sleep over its right ignoring the statute of limitation and without giving sufficient and reasonable explanation for the delay, expect its Appeal to be entertained merely because it is a State. Appeals filed beyond a period of limitation have been entertained by us, where the delay has been sufficiently explained such as in cases of bonafide mistake, malafide action of the Officer of the State etc. However, to seek that the period of limitation provided in the statute be ignored in case of Revenue s appeals cannot be accepted. The Appeals which are filed by the Revenue in this Court under Section 260A of the Act are very large in number and on an average over 2000 per year from the orders of the Tribunal. Thus, the officers of the Revenue should be well aware of the statutory provisions and the period of limitation and should pursue its remedies diligently.

Issues Involved:
1. Condonation of delay in filing appeals.
2. Adequacy of the explanation provided for the delay.
3. Applicability of precedents regarding condonation of delay.
4. Impact of non-appearance by the respondent.
5. Legal principles governing limitation and condonation of delay.

Detailed Analysis:

1. Condonation of Delay in Filing Appeals:
The primary issue revolves around the condonation of a 318-day delay in filing two appeals against a common order dated 15th April 2016 by the Income-Tax Appellate Tribunal, concerning Assessment Years 2008-09 and 2009-10. The applicant sought condonation of this delay through Notices of Motion.

2. Adequacy of the Explanation Provided for the Delay:
The affidavits submitted by the applicant outlined the timeline of events leading to the delay:
- The impugned order was received by the Principal Commissioner of Income-Tax, Pune on 5th July 2016 and forwarded to the Commissioner of Income-Tax (Exemptions) on 11th July 2016.
- The papers were transferred to the Deputy Commissioner of Income-Tax (Exemptions), Circle, Pune, who prepared a report on 21st September 2016, approved by the Joint Commissioner of Income-Tax, and sent back to the applicant on 29th September 2016.
- The applicant forwarded the report to the Chief Commissioner of Income-Tax, New Delhi for approval, received on 29th May 2017.
- The appeal was filed on 20th July 2017.

The Court found no proper explanation for the delay, noting gaps in the timeline and lack of specific dates. The affidavits failed to explain the period during which the proposal was pending before the Chief Commissioner and the subsequent delay after receiving approval. The additional affidavits also lacked particulars and did not satisfactorily explain the delay.

3. Applicability of Precedents Regarding Condonation of Delay:
The Court referenced the Supreme Court's decision in "Office of the Chief Post Master General and Others V/s. Living Media India Ltd. and Another," which emphasized that government bodies must provide plausible and acceptable explanations for delays and cannot rely on bureaucratic inefficiencies as a blanket excuse. The Court highlighted that the law of limitation binds everyone, including the government.

The applicant argued that the Supreme Court's decision in "Commissioner of Income Tax, Kolkata-II V/s. West Bengal Infrastructure Development Finance Corporation Ltd." should apply, where the Court condoned the delay considering the high tax stakes involved. However, the Court clarified that this decision does not grant an automatic right to condonation but suggests that High Courts should consider imposing costs and examining cases on merits if a sufficient cause for delay is established.

The Court also discussed "G. Ramegowda, Major and Others V/s. Special Land Acquisition Officer, Bangalore," noting that while government processes may inherently cause delays, modern technologies mitigate this issue, and delays must still be reasonably explained.

4. Impact of Non-Appearance by the Respondent:
The applicant contended that the respondent's non-appearance implied no objection to the delay being condoned. The Court rejected this, emphasizing that the law of limitation aims to bring certainty and finality to litigation, benefiting the community by ensuring timely legal remedies.

5. Legal Principles Governing Limitation and Condonation of Delay:
The Court reiterated that the period of limitation should not hinder substantial justice but also cannot be ignored without sufficient and reasonable explanation. The law assists those who are vigilant, and appeals filed beyond the limitation period must be sufficiently justified. The Court noted that it has entertained delayed appeals where justified by bonafide mistakes or malafide actions but cannot accept delays due to bureaucratic inefficiencies.

Conclusion:
The Court dismissed both Notices of Motion for condonation of delay and disposed of the appeals, emphasizing the need for sufficient and reasonable explanations for delays and the importance of adhering to statutory limitations. The decision underscores that government bodies are not exempt from the law of limitation and must pursue legal remedies diligently.

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