2025 (10) TMI 237 - SCH - Income Tax

Judgment upholds delay condonation but faults reasoning; revenue must pay Rs.25,000 costs in each tax appeal.

SC upheld HC's orders condoning delay in filing revenue appeals but found the HC's reasoning deficient and insufficiently detailed. SC directed that, ... Condoning the delay in filing of the appeals by the revenue - eligible reasons of delay - Validity of orders passed by HC condoning the delay in filing of the appeals by the revenue HELD THAT:- High Court supplied its own reasoning, but the reasoning by which the application for condonation of delay is considered and disposed of is rather casual. It is necessary for the High Court to examine the facts mentioned in the application for condonation of delay in detail before taking a final decision. As we are broadly satisfied that there is no serious error in condoning the delay in each of the appeals, but the reasoning being rather deficient, we are of the opinion that interest of justice will be sub-served if the revenue is directed to pay costs quantified at Rs. 25,000/- to the petitioners herein/ respondent(s)-assessees in each of the tax appeals before the High Court. 'Delay condoned.' The Court noted Special Leave Petitions challenge High Court orders that condoned delay in filing revenue appeals; delays varied and the High Court's reasoning was 'rather casual.' Although satisfied there was 'no serious error' in condoning delay in each appeal, the Court found the High Court's reasoning deficient and directed that, in the 'interest of justice,' the revenue pay costs of Rs.25,000 to the petitioners/respondents-assessees in each tax appeal before the High Court. These amounts 'be deposited in four weeks from today.' With these directions the Special Leave Petitions were disposed of and pending applications, if any, were ordered to stand disposed. The Court emphasized the necessity for the High Court to examine the facts in condonation applications in detail before final decision.