2023 (1) TMI 1480 - HC - Income Tax

Delay of 944 days in filing the appeal - HELD THAT - One of the reasons given in the affidavit filed in support of the condone delay petition that there was a restructuring in the department and the case was transferred to the Principal Commissioner of Income Tax (1) Kolkata on 20.10.2020 and it is thereafter the action was taken. Admittedly the period of limitation for filing the appeal expired much prior to the outbreak of Covid and the imposition of lockdown. In any event the restructuring of the department can hardly be a reason in not preferring the appeal within the period especially when the approval for filing an appeal given by the PCIT (3) much prior to the date of restructuring. Thus we find that sufficient cause has not been shown for condonation of the inordinate delay for 944 days. For the above reason the condone delay petition is dismissed. Consequently the appeal stands rejected. The stay application also stands dismissed.

Summary

The Calcutta High Court, per Justices T. S. Sivagnanam and Hiranmay Bhattacharyya, dismissed a condonation of delay petition due to a 944-day delay in filing the appeal. Although the Principal Commissioner of Income Tax (3), Kolkata approved the appeal on 21.2.2020, the appeal was filed only on 28.11.2022, well beyond the limitation period which expired before the COVID-19 lockdown. The Court held that "the restructuring of the department can hardly be a reason in not preferring the appeal within the period," especially given prior approval. Consequently, the Court found "sufficient cause has not been shown for condonation of the inordinate delay," dismissed the delay petition, rejected the appeal, and dismissed the stay application. Substantial questions of law were left open.