2026 (1) TMI 1132 - SCH - Income Tax

Dependent agent PE and royalty receipt petition dismissed due to 558-day delay; condonation refused and costs imposed

Dependent agent permanent establishment and characterisation of royalty receipts were in issue, but the petition was refused on procedural grounds: the ... Dependent agent PE (DAPE) in India - nature of transaction between the assessee and ESPN India - Royalty receipt - delay of 558 days days in filing the present petition - HELD THAT:- The application for condonation of delay hardly justifies condonation of such a huge delay in filing the petition. Accordingly, the application for condonation of delay is dismissed. Consequently, the Special Leave Petition is also dismissed with cost of ₹50,000/- for filing the present petition after such a huge delay. HC [2024 (2) TMI 1495 - DELHI HIGH COURT] order confirmed. Issues: (i) Whether the application for condonation of delay of 558 days in filing the Special Leave Petition should be allowed; (ii) Whether the Special Leave Petition should be entertained despite the delay.Issue (i): Whether the application for condonation of delay of 558 days should be allowed.Analysis: The petition record shows a delay of 558 days in filing the petition and the application for condonation of delay was examined. The Court found that the explanation furnished did not adequately justify condonation of such a large delay and therefore the requisite satisfaction for condonation under the governing principles was not reached.Conclusion: The application for condonation of delay is dismissed.Issue (ii): Whether the Special Leave Petition should be entertained notwithstanding the dismissed condonation application.Analysis: Given the dismissal of the condonation application for inordinate delay and inadequate justification, the petition cannot be admitted for consideration on merits. The Court consequently considered the appropriate consequential order, including imposition of costs for filing the petition after such delay.Conclusion: The Special Leave Petition is dismissed and costs of 7,50,000 are imposed on the petitioner to be deposited within four weeks.Final Conclusion: The petition is dismissed for want of condonation of delay and is finally disposed of; pending applications stand disposed of.Ratio Decidendi: An inordinate delay in filing a petition without an adequate explanation does not satisfy the test for condonation of delay and warrants dismissal of the petition, with consequential costs where appropriate.