PCIT-1 Vs SBS Biotech Unit-II (Himachal Pradesh High Court)
A short delay in filing an income-tax appeal deserves to be condoned where the explanation demonstrates bona fide and diligent pursuit of the appellate remedy, and the merits of the proposed appeal cannot be examined at the stage of deciding limitation: Himachal Pradesh High Court
Summary: The Himachal Pradesh High Court allowed the application filed by the Principal Commissioner of Income Tax-1 seeking condonation of 31 days’ delay in filing an appeal against the Income Tax Appellate Tribunal, Chandigarh Bench “B”, Chandigarh order dated 25.02.2025 in ITA No. 413/Chd/2024 titled SBS Biotech Unit-II v. The Pr. CIT-1 Chandigarh. The Department explained that the delay arose because the case records were with the Income Tax Officer, Parwanoo, opinion was sought and forwarded for approval, instructions were thereafter issued to Standing Counsel, the authorised signatory was at Chandigarh and festival breaks intervened. The High Court found that the explanation covered the entire period of delay and demonstrated bona fide, diligence, promptitude and sufficient cause. It distinguished the Supreme Court decisions relied upon by the respondent, including Shivamma, involving 3966 days’ delay, and Managing Committee of Namrata Girls High School, involving cumulative delay of about 11 years. The Court held that the nominal 31-day delay could be condoned and that the merits of the proposed appeal should not be examined at the stage of deciding the condonation application. It further held that Section 260A(2A) of the Income Tax Act does not expressly make the High Court functus officio after expiry of 120 days or contain restrictive expressions such as “but not thereafter” or “not exceeding”. Relying upon the principles stated in Jittu Yadav, the Court held that sufficient cause, bona fide conduct and due diligence justified condonation. The application, OMP (M) No. 501 of 2025, was accordingly allowed, the 31-day delay was condoned and the accompanying appeal was directed to be registered and listed for admission.
