2014 (4) TMI 83 - SC - Income Tax

Condonation of delay Delay of 12 days Held that - Sub-section 2A has been inserted in Section 260A we.f. 1-10-1998 which provides that the High Court may admit an appeal after the expiry of the period of one hundred and twenty days HC has not indicated any reason as to why the cause shown in the affidavit for condonation of delay in support of the notice of motion was not sufficient thus the delay condoned and the matter is restored to the HC for adjudication Decided in favour of Revenue.

Summary

Issues: Delay in filing appeal under Section 260A of the Income Tax Act, 1961.

The Supreme Court addressed the issue of delay in filing an appeal under Section 260A of the Income Tax Act, 1961. The Revenue had filed an appeal before the Bombay High Court, which was dismissed due to a delay of 12 days. The High Court rejected the condonation of delay, stating there was no justification for it. The Court noted the insertion of sub-section 2A in Section 260A by the Finance Act, 1998, allowing admission of an appeal after 120 days if sufficient cause is shown. The High Court failed to provide reasons for deeming the cause insufficient, leading the Supreme Court to find the High Court's approach hyper-technical and resulting in a miscarriage of justice.

The Supreme Court carefully reviewed the affidavit supporting the notice of motion for condonation of delay and concluded that the High Court's approach was overly technical, causing a failure of justice. Consequently, the Court allowed the appeals, condoned the delay in filing the appeal by the Revenue, and restored the appeal to the High Court for hearing and consideration in accordance with the law. No costs were awarded in this matter.