SC rejects Revenue SLP in dissolved company tax case, refuses to condone 433-day filing delay

SC dismissed the Revenue's SLP challenging the ITAT order in income tax proceedings against a dissolved company. The ITAT had dismissed the Revenue's appeal and the assessee's cross-objection, noting absence of representation during the IBC moratorium and following NCLT orders and coordinate bench decisions. HC upheld the ITAT's approach. Before SC, there was a delay of 433 days in filing the SLP. SC held that the explanation offered did not constitute sufficient cause and refused to condone the delay, dismissing the petition on limitation.

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The Supreme Court, exercising jurisdiction under Article 136, declined to condone an "inordinate delay of 433 days" in filing the Special Leave Petition. The petitioners' explanation for the delay was examined and found inadequate, with the Court explicitly holding that the reasons put forward "does not constitute sufficient cause." Applying the settled principle that limitation and condonation of delay require a credible, satisfactory explanation covering the entire period of delay, the Court refused to extend the benefit of discretion for late filing. As a result, the Special Leave Petition was dismissed solely "on the ground of delay," without the Court entering into the merits of the underlying dispute. All pending interlocutory or connected applications were also ordered to "stand disposed of" consequent upon the dismissal.

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