In a recent case, the Calcutta High Court refused to condone a delay of 1923 days in the absence of sufficient explanation. The bench viewed that there may be cases where there is sheer negligence on the lower-level officials’ part.
The court found that there was no reason as to why the appeal was filed with such an inordinate delay of 1923 days. The order passed by the Tribunal is dated 7.9.2019 and the certified copy was received by the Income Tax Department on 12.10.2018 and the appeal was presented on 16.5.2024.
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It is unclear why in such high revenue matters the department does not exercise due diligence in preferring the appeal within the period of limitation. This Court had been very lenient whenever an application for condonation of delay was filed at the instance of the Income Tax Department and exercised discretion in its favour and condoned the delay.
It was viewed that exercise of such discretion cannot be without any basis as the Court is expected to record reasons as to why they are satisfied that in a given case such exercise of discretion is warranted. Admittedly the assessee is not a small-time assessee or an individual and they have various business activities in West Bengal. It is not clear whether these matters are brought to the notice of the Principal Chief Commissioner of Income Tax of West Bengal and Sikkim, the highest authority of the Income Tax Department for this region.
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“There may be cases where there is sheer negligence on the part of the officials at the lower level”, the bench viewed.
The Income Tax Department evolved a procedure to ensure that appeals are presented within the period of limitation and for those with a marginal delay, a proper explanation has to be given for the delay failing which the Court will not be inclined to exercise any discretion in favour of the department.
The Peerless General Finance And Investment Co.Ltd, the respondent/assessee is well entitled to oppose the delay as an appeal filed very belatedly such as in this case that is after 1923 days is likely to unsettle certain settled matters and may lead to other consequences which may have an commercial impact on the assessee. Therefore, it is high time that the Principal Chief Commissioner of West Bengal and Sikkim issues necessary circulars to all its field formations so that appeals are preferred before this Court within the period of limitation.
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The Coram of Chief Justice T.S Sivagnanam and Justice Hiranmay Bhattacharyya observing that the delay had not been explained and the same being inordinate dismissed the appeal. Consequently, the appeal stands rejected and the substantial questions of law which have been raised are left open.
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