Delay in filing appeal against ITAT order results in dismissal due to unexplained six year delay and protection of finality

Unexplained six-year delay in prosecuting an appeal against an ITAT order led the High Court to emphasise finality of tribunal decisions and dismissed the appeal. The court found no satisfactory account for the period 2018-2024 and noted that interference at this stage would unsettle settled positions. The record showed no active pursuit of the matter by the revenue and counsel could not explain the current status; on that basis the appeal was held liable to be dismissed to protect finality and legal certainty.

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Issues: Whether the appellate court should entertain the Revenue's appeal filed in 2018 after prolonged inaction and non-prosecution, and whether interference is warranted after the passage of time.

Analysis: The Court examined the procedural posture showing that the appeal filed in 2018 by the Revenue was not pursued for over six years and that no satisfactory explanation was furnished for the inaction when queried. The Court considered the effect of prolonged delay and non-prosecution on the finality of the Tribunal's order and on the stability of the settled position, observing that interference at this belated stage would unsettle matters that appear to have reached finality.

Conclusion: The Court declined to entertain the appeal due to inordinate delay and non-prosecution and disposed of the appeal, leaving the questions of law open to be considered at an appropriate stage.

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