Delhi HC warns Income Tax Dept on Delay in Filing Appeal u/s 260 (A) of Income Tax Act and commented to Avoid ‘Snail Pace’ Work Style even in ‘Click of Mouse’ Age [Read Order]

 The Delhi High Court in a recent case warned the Income Tax Department on delay in filing an appeal under section 260 A of the Income Tax Act, 1961 and directed them to avoid snail pace work style even with a click of the mouse age.                    

The applicant revenue submitted that there has been a delay of 498 as of 31.05.2023, in filing the accompanying Appeal. The Applicant/ Appellant contended that there has been a delay due to sufficient cause despite due procedure followed by the Applicant/ Appellant in filing the said Appeal.

The said delay in filing the appeal has arisen in bonafide circumstances and for no fault omission or negligence on the part of the Applicant/ Appellant herein and earnest efforts had been made by the Applicant/ Appellant to expedite the process at various stages of finalising the accompanying Appeal, within the earliest possible time.

 Further argued that the power to condone delay must be exercised liberally in favour of the applicant, especially where the applicant is a government body and the exchequer is involved.  On the other hand, counsel for M/s National Fertilizers Ltd the respondent/assessee strongly argued that no circumstances have been set up in this application to explain such an inordinate delay in filing the appeal.

The provision under Section 260A(1) of the Income Tax Act lays down that an appeal shall lie to the High Court from every order passed in appeal by the Appellate Tribunal if the High Court is satisfied that the case involves a substantial question of law. 

Sub-section (2) of Section 260A mandated that the Principal Chief Commissioner or Chief Commissioner or the Principal Commissioner or Commissioner (the revenue) or an assessee aggrieved by any order passed by the Tribunal may file an appeal to the High Court and such appeal shall be filed within 120 days from the date on which the order appealed against is received by the assessee or the revenue. 

It was observed that the legislature under Section 260A of the Act has already granted a comparatively much longer period of 120 days to the revenue to file appeals.  That in itself should call for rather stricter scrutiny of the matrix set up by the revenue to explain delays in filing its appeals. 

“Largely, behind such delays on the part of government agencies in initiating appropriate legal proceedings lies extreme laxity, negligence and dereliction of duties on the part of government officials.  Even in this hi-tech “click of mouse” age some of the government officials are yet to come out of their love for “snail pace” style of working.”, the court comprising  Justice Rajiv Shakdher and Justice Girish Kathpalia held.

The Court viewed that the applicant failed to explain sufficient cause for a delay of 498 days in filing the appeal and dismissed the condonation application. 

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