Court Dismisses Appeal Due to Inexcusable 1085-Day Delay in Filing Under Income Tax Act's Sec. 260-A.

The HC dismissed the application for condonation of delay in filing an appeal under Sec. 260-A of the Income Tax Act, 1961, citing a lack of valid explanation for the 1085-day delay. The appeal, questioning the ITAT's decision on Sec. 80IC deduction, was filed 224 days late. The Court emphasized that negligence, even by the Government, cannot justify delay, and highlighted the necessity of diligence in legal proceedings. Consequently, the appeal was dismissed due to the applicant's failure to file within the prescribed period, reinforcing the principle that procedural timelines must be strictly adhered to.

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Issues:
Delay in filing the appeal under Section 260-A of the Income Tax Act, 1961 challenging the order passed in M.A. 99/Chd/2019 filed in ITA No. 885/Chd/2017 for the assessment year 2012-2013.

The applicant/appellant filed an application seeking condonation of delay of 1085 days in filing the appeal under Section 260-A of the Income Tax Act, 1961. The assessing officer initially passed an order under Section 143(3) of the Income Tax Act 1961, assessing the income of the respondent-assessee. An appeal was partly allowed by the Commissioner of Income Tax (Appeals), Shimla, and further, the Income Tax Appellate Tribunal granted deduction under Section 80IC to the assessee. The department filed an appeal before the High Court questioning the order modifying the deduction under Section 80IC. The appellant contended that the delay in filing the appeal was not willful or intentional, and sought condonation of delay under Section 5 of the Limitation Act, 1963. However, the Court noted that the appeal was filed 224 days after the prescribed period, and no valid explanation for the delay was provided. The Court dismissed the application and consequently, the appeal.

In a related judgment, the Court cited a previous case emphasizing the importance of diligence in prosecuting matters before the court. The judgment highlighted that negligence in filing appeals cannot be condoned merely because the Government is a party. Despite recognizing the need for a liberal approach in condoning delays, the Court found that the Department's negligence in this case was evident. The Court concluded that the Department could not take advantage of earlier decisions, and the appeal was dismissed due to the negligence on the part of the applicant/appellant in filing the appeal within the prescribed time.

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