The Calcutta High Court, while allowing an appeal by the income tax department after condoning delay, has held that if a substantial question arose through an appeal filed under section 206A of the Income Tax Act, 1961, cannot be dismissed by merely quoting technical reasons.
The department filed an appeal against the assessee, M/S. Organon (India) Pvt. Ltd along with a delay of 314 days. The assessee contended that the affidavit filed in support of the condone delay petition, does not give any reason for the inordinate delay of 314 days in filing the appeal and the respondent has clearly mentioned about the various period during which there has been no explanation for the delay.
Rejecting argument of the assessee, a division bench comprising Justice T.S. Sivagnanam and Justice Hiranmay Bhattacharyya have observed that “some of the relevant principles would be that ordinarily a litigant does not stand to benefit by lodging an appeal laid; refusing to condone delay can result in a meritorious matter being thrown out at the very threshold and cause of justice would be defeated; when substantial justice and technical consideration are pitted against each other because of substantial justice reserve to be deferred for the other side cannot claim to have vested right if injustice being done because of non-deliberate delay.”
Condoning the delay, the High Court observed that “As pointed out earlier, there is a delay of 314 days in filing the appeal. The learned Advocate appearing for the respondent/assessee is right in submission of certain period of the delay remains unexplained. However, bearing in mind the legal principles which has been laid down by the Hon’ble Supreme Court if we examine the matter, we are of the view that since the present appeal has been filed under Section 260A of the Income Tax Act, 1961 and the Court is required to examine as to whether any substantial question of law would arise for consideration we are of the view that the appeal should not be thrown out on technical ground. That apart we find that Tribunal had referred to a decision of the Co-ordinate Bench in the case of Philips India Ltd. Vs. ACIT in ITA/2489/Kol/2017 dated 4.4.2018. We are informed that as against the said order appeal has been preferred before this Court at the instance of the department and the same is pending. If such is the case, we are of the view that ends of justice would be met if we exercise discretion and condone the delay in filing the appeal. For such reason, the application is allowed and the delay in filing the appeal is condoned.”
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan AdFree. Follow us on Telegram for quick updates.
