Civil Miscellaneous Petition Dismissed: Court Rejects 2139-Day Delay in Filing Tax Case Appeal Due to Negligence.

The HC dismissed the Civil Miscellaneous Petition, rejecting the request to condone a 2139-day delay in filing the Tax Case Appeal against the ITAT order. The court found the petitioner's reasons for delay unconvincing and attributed the delay to negligence, not a bona fide cause. Consequently, the Tax Case Appeal was rejected at the SR stage, with no costs awarded.

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Issues Involved:
1. Condonation of delay in filing the Tax Case Appeal.
2. Examination of reasons for delay.
3. Assessment of "sufficient cause" for delay.
4. Legal precedents on condonation of delay.

Summary:

Condonation of Delay in Filing the Tax Case Appeal:
The petitioner sought to condone a delay of 2139 days in filing the Tax Case Appeal against the order of the Income Tax Appellate Tribunal (ITAT), Chennai. The respondent/Department opposed the petition, arguing that the petitioner, being experienced in filing appeals, failed to provide a valid explanation for the extensive delay.

Examination of Reasons for Delay:
The petitioner cited two main reasons for the delay:
1. The petitioner only realized the Tribunal's error in dismissing the appeal as repetitive upon receiving the ITAT order dated 12.08.2022.
2. The officer handling litigation inadvertently left out the specific ITA while dealing with other appeals, compounded by financial crises and proceedings under the Insolvency and Bankruptcy Code (IBC).

Assessment of "Sufficient Cause" for Delay:
The court found the reasons unconvincing and mutually destructive. The affidavit revealed that the petitioner was aware of the error much earlier, as evidenced by a miscellaneous petition filed on 08.03.2017, seeking to restore the dismissed ITA. The court concluded that the delay was due to negligence rather than any bona fide cause.

Legal Precedents on Condonation of Delay:
The court referred to several precedents, emphasizing that "sufficient cause" requires the petitioner to act diligently and in good faith. The judgments cited included Basawaraj v. Land Acquisition Officer and Ajay Dabre Vs Pyare Ram, which underscored that negligence or lack of bona fide action does not justify condoning inordinate delays.

Conclusion:
The court dismissed the Civil Miscellaneous Petition, finding no sufficient cause for the 2139-day delay. Consequently, the Tax Case Appeal was rejected at the SR stage itself, with no costs awarded.

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