LI Network
Published on: 26 August 2023 at 11:20 IST
The Delhi High Court has rejected the appeal of the income tax department and declined to condone a delay of 498 days in filing an appeal under Section 260A of the Income Tax Actin PCIT Versus M/S National Fertilizers Ltd.
The court criticized the delay, emphasizing that despite the technological advancements, some government officials continue to operate at a sluggish pace, causing harm to the exchequer or the rights of the parties involved.
The bench of Justice Rajiv Shakdher and Justice Girish Kathpalia highlighted that delays in such appeals could be aimed at dismissing government appeals on grounds of limitation, benefiting the opposing party.
The court observed that such delays negatively impact either the revenue collection or the rights of the assessee in litigation against the state.
The department sought condonation for the significant delay through an application under Section 151 of the Civil Procedure Code.
The assessee argued that the application lacked circumstances justifying the delay and that such laxity resulted in a substantive right accruing in favor of the assessee.
Section 260A(1) of the Income Tax Act allows appeals to the High Court from orders passed by the Appellate Tribunal if they involve substantial questions of law.
Section 260A(2) stipulates a 120-day limit for filing appeals by the department or the aggrieved assessee.
The court found that the 498-day delay was unreasonable, and it noted that the delay condonation application appeared to be a pre-printed template with the delay period subsequently filled in, indicating a lack of seriousness on the department’s part regarding limitation issues.
